Brisbane Granny Flat living room with fireplace

Whether it be to provide housing for your family, or as an investment to earn rental income, granny flats are growing in popularity.

If you are considering this as an option, there are two common ways to arrange the money you need: accessing the equity in your property or taking out a construction loan.

Using Equity

The simplest way to secure funds for your new granny flat is using equity in your current home. It’s relatively easy to arrange a home loan to build a granny flat if you have enough equity in your existing property and you have sufficient income to support the new loan.

Using a Construction Loan

If you don’t have enough equity in your property, another option is to take out a construction loan. Construction loans are usually approved based on the value of the existing property plus the value of the granny flat build contract.

Before you begin it’s important to check with your local council to make sure you are working within the right parameters and regulations, including the rules around using a granny flat as an investment.

As the cost of a granny flat could range from $50,000 to more than $250,000, your first step should be to arrange an obligation free consultation to go through your finance options.


-Victor Larder, Astute Financial
Astute Financial Management Pty Ltd | ABN 59 093 587 010 | Australian Credit Licence Number 364253. AIW Dealer Services Pty Ltd | ABN 59 153 322 420 | Australian Financial Services Licence Number 414256

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