Granny Flats and Holiday Homes: Turning Today’s Ideas into Tomorrow’s Income
- The Groovy Granny
- Dec 5, 2025
- 3 min read
As the holiday season kicks off across the NSW South Coast — from Wollongong to Kiama, The Illawarra to Ulladulla or Shellharbour to The Shoalhaven — the beaches are buzzing, holiday homes are filling up, and the Airbnb listings are booming.
Whether you’re a homeowner watching the influx of tourists… or a visitor dreaming of having your own summer escape one day… this time of year offers a moment of insight. What if next summer, your property was earning you income — not just costing you in rates and maintenance? What if you had a private, self-contained granny flat that you could rent to travellers, house a family, or even use yourself? You’re not too late — but you’re right on time to start thinking ahead.
The South Coast Holiday Surge — And What It Tells You About Holiday Homes
Every December, the same pattern plays out: tourists flood the region. Hotels are booked out. Short-stay rentals are in high demand. And locals with secondary dwellings — like granny flats — quietly rake in thousands over the summer.
Granny flats (or “secondary dwellings”) are small, self-contained homes on your existing property. Built right, they’re ideal for:
Holiday rentals during peak summer months
Family visits — grandkids, adult children, or aging parents
Future flexibility — rent it, live in it, or use it part-time
Why You Should Start Planning Now
Here’s the reality: Even though the idea might hit you this summer, building a granny flat that’s ready for Summer 2027 requires vision, planning, and time.
Wollongong Granny Flats work many months in advance, and we prioritise quality over quantity. We build design-driven granny flats with high-quality design and materials — we do not make prefab, which means your Wollongong granny flat is tailored to your block, council requirements, and needs.
So, while it’s too late to build a Wollongong granny flat for this summer…
It’s exactly the right time to start talking about granny flats for summer 2027.
The December 2026 You will thank you.
What Makes a Great Holiday Granny Flat?
Not all granny flats are equal. If your goal is to create a space that doubles as a guest house and income source, here are a few features to prioritise:
Smart Layout
1–2 bedrooms with open-plan living
Simple kitchen, bathroom, storage
Good airflow and natural light
Durable Materials
Easy-clean surfaces, vinyl plank or tiled flooring
Coastal-rated finishes if you’re near the beach
Outdoor Appeal
Small deck or alfresco area
Separate entrance or clear division from the main home
Compliance-Ready
Meets NSW planning codes (CDC or DA)
Approved for short-term rental if desired
Wollongong Granny Flats works closely with you to ensure your design fits not only your property, but your long-term goals — whether that’s family, flexibility or financial return.
Holiday Income: What’s the Opportunity?
Let’s break it down:
A well-located, modern granny flat in areas like Wollongong, Shell Cove, Kiama, or Vincentia can fetch $150–$250 per night (or more) in summer on platforms like Airbnb or Stayz.
Just renting it out for the six peak weeks (mid-Dec to end Jan) could return $6,000–$10,000 — year after year.
That doesn't include long weekends, school holidays, or off-peak bookings.
Compare that to traditional long-term rent… or worse, an unused backyard that generates no return.
Holiday letting isn’t for everyone — but for those who plan well, it can turn a modest build into a smart lifestyle and income move.
It’s Never Too Early to Start
Here’s what you can do over the holidays if the idea sparks something:
1. Look Around
While you're out and about, take note of which properties have secondary dwellings. Pay attention to how they’re designed, positioned, and used.
2. Check Your Block
Back home? Pull up your site plan or zoning info. If your lot is over 450m² and complies with council setbacks and access requirements, you're probably eligible to build.
3. Talk to a Specialist Builder Early
WGF limits the number of granny flats it builds each year to maintain high quality. Spots for 2026–27 builds will fill fast — especially after summer.
Final Thought: Make Next Summer Look Different
You might be soaking up the sun now… but this time next year, you could be:
Hosting guests in your brand-new granny flat
Earning income that helps pay the mortgage
Or enjoying your own custom-built coastal retreat
Whatever your vision — start the conversation now. The December 2026 YOU will be grateful.
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