Thinking of buying a property with the goal of adding a granny flat / Secondary Dwelling ? It’s a great way to create extra income, house family, or boost long-term value, but not every site is suitable. Before signing a contract, it’s important to understand the governance and planning rules that determine whether a granny flat can be built on your chosen block. 1. Understand the Planning Framework In NSW, granny flat approvals are guided by a combination of state and loca