By Al Jafri – Progeny Building Group
Posted 1 June 2020


The advent of the granny flat era has seen a drastic evolution on the usage, design and quality of secondary dwellings in your backyard. From once being a basic mini home for the purposes of housing elderly parents, this type of structure has evolved into a home that ticks all the boxes when it comes to construction, usage and long-term benefit in the new millennial.

Although granny flats do still come in various forms, the modern predominate uses include maximising income through rental returns, creating space for families, in-law accommodation and teenage retreats.

There are a lot of misconceptions floating around when it comes to granny flats and the purpose of this article is to debunk some of those myths, so you can make informed decisions when you decide it’s time to build or to determine whether a granny flat would suit your needs.


Myth 1: Granny flats are not good quality homes

In the past the expression granny flats were associated with words like “cheap” and “not good quality”, but what we build today at Progeny are architecturally designed homes, constructed in a tasteful manner that suits your specific needs and budget.

We offer entry level options all the way through to high-end designer guest homes. Even our entry level granny flats will impress you with its quality, inclusions and value while our designer Guest Homes are sure to knock your socks off. Enquire with us today to discuss your options.


Myth 2: Granny flats are too small to be of use

Indeed, there are size limitations when it comes to approval of granny flats, but its usage is without a doubt the most effective use of land when the block already consists of a main dwelling.  Within the size imitations imposed by SEPP, you are still able to achieve a 2-or 3-bedroom home with 2-bathrooms, a full-sized kitchen, laundry and a sizable living room. In addition to that, there are external elements which can be incorporated which do not count towards the size limitation (such as an alfresco).

2 or 3-bedroom homes with such features demand an impressive rate of return on the rental market and provide adequate space for families.

Clever designs which maximise use of space will be the key ingredient to ensure that your next secondary dwelling is such that will never too small to be of use.


Myth 3: I won’t get a good rental return from my granny flat and it’s not worth the money

Construction of a quality granny flat or guest home has been shown to provide a rate of return that exceeds other conventional forms of investment. With consistent ROI’s of 12-22%, the ability to acquire a new stream of income from your granny flat or Guest Home is an avenue worthy of consideration.


Myth 4: A granny flat won’t really increase the value of my property

A number of factors determine the value of a property including the location, demographics, size and facilities, block size, type of home, whether it requires maintenance, level of finish, overall desirability/appeal and aesthetics, supply and demand, interest rates and rate of return.

Having two streams of income from one block adds to the appeal of the property, especially for investors and families. Consequently, this allows them to minimise their monthly repayments to their lender. Should their deposit be sizable, it’s more than likely that they will be able to receive a net income from the property with positive cashflow.

By virtue of maximising rental income on your site, it’s more than likely to have a positive impact on the value of your home.


Myth 5: Building a granny flat is a long and daunting process

Constructing a granny flat is actually a simple process and is quicker than building a primary single storey dwelling. This is not only due to the size of the granny flat, but also because in 2009 the NSW government introduced Affordable Housing SEPP for the purposes of increasing the supply and availability of affordable properties for the community. The state government has empowered Private Certifying Authority (PCA) to approve granny flats given that their design meets a predetermined criteria, which can be achieved in as little as 10 business days once plans are submitted.

At Progeny, we make that process even simpler so you are able to design your own granny flat from the comfort of your own home with our architects then sit back and wait for the approvals to be granted. Customers then make colour selections during the course of construction and watch their dwelling be created in their backyard. Contact us for more information.


Myth 6: Constructing in my backyard will be an inconvenience

At Progeny, we appreciate that by entering your private residence to construct we are stepping into a personal space that you call home. Whilst construction is in progress, our aim is to ensure that it is as least disruptive to your life as possible.

Further, our streamlined processes, regular updates and scheduling techniques will help ensure that your experience is a pleasant one.


Myth 7: If I build a granny flat behind my main residence, then I won’t have much privacy in my home

There are many ways to ensure that your main residence receives the level of privacy that you need for your home. Achieving maximum privacy comes down to a number of factors such as the layout of the proposed secondary dwelling and implementing various materials during construction to maximise privacy for both dwellings. If privacy is a concern, let us know during the design state and we can discuss all options which will be relevant to your project.


Myth 8: My backyard is quite small so I cannot build a granny flat

Although there are minimal block sizes for constructing secondary dwellings, it’s best to have an online site assessment completed by the Progeny Team before assuming that it can’t be done. Contact us for your free site assessment.


Myth 9: It’s expensive to build a granny flat because I need to get council approval

Whilst approval is required, under Affordable Housing SEPP, you won’t need to go to council and can engage any one of our many recommended private certifiers (PCA’s) for approval. In turn this streamlines the process of approval and results in achieving approved plans without excessive costs or bureaucratic delays.


Myth 10: It will cost much more if I want to make the granny flat look even nicer 

All of our granny flats look nice to begin with and all of our granny flats and Guest Homes are custom designed to suit your block. In the process of finalising the bespoke floor plans that you like most, you can also amend the exterior according to your taste.

When it comes to the interior, even our entry level product incorporates quality materials in colours and styles of your choice. Being a turnkey package, you can opt for even a standard product and you will get exactly what you need without having to pay more. But where you choose to upgrade elements of your secondary dwelling, we provide that option to you at cost price.


We hope that the common myths associated with granny flats has been resolved once and for all. Should you have any further questions, please contact us using the form below or give us a call on 1800 PROBUILD.


  • Custom designs suited to your block and designed from scratch;
  • Incorporating quality materials;
  • Cost price upgrades;
  • Price matching policy;
  • Turnkey packages to suit your budget;
  • A unique customer experience from commencement all the way through to post-completion;
  • Economical solutions and luxury designer packages.


Progeny Building Group
Progeny Guest Homes