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Top 5 Reasons to Build a Granny Flat in 2025 — Smart, Flexible, and Future-Proof

  • Writer: The Groovy Granny
    The Groovy Granny
  • Jul 23
  • 2 min read

Updated: Jul 24

As property prices continue to rise and families look for smarter ways to make the most of their land, granny flats are becoming one of the most popular solutions across NSW. Whether you're planning for extended family, rental income, or simply more flexibility, here’s why 2025 is the perfect time to build a granny flat.

One of our completed builds in Corrimal – stylish, simple, and functional
One of our completed builds in Corrimal – stylish, simple, and functional

1. Earn Passive Income from Your Backyard

With strong rental demand throughout the Illawarra, Shoalhaven and surrounding regions, many of our clients are choosing to build granny flats to generate a reliable, long-term income stream.

A well-designed one or two-bedroom granny flat can earn between $400–$600 per week, depending on the location, layout, and inclusions. And the best part? You’re earning from land you already own.


Rent-ready design with full amenities — perfect for generating income
Rent-ready design with full amenities — perfect for generating income

2. Support Family While Maintaining Independence

Multigenerational living is on the rise and for good reason. From aging parents to adult children saving for their first home, many families want to stay close while still having their own space.

A granny flat provides a fully self-contained home just steps away, offering both connection and independence. It’s the perfect way to support family without sacrificing privacy.


Designed for family — independent space without compromising connection
Designed for family — independent space without compromising connection

3. Add Value to Your Property

Granny flats aren’t just convenient; they’re a smart long-term investment. A professionally designed and approved build can significantly increase your property’s market value and broaden its appeal to future buyers and investors.

Whether you're planning to sell one day or simply want to future-proof your property, a high-quality secondary dwelling can deliver strong returns.


A high-quality granny flat can boost your property’s appeal and market value.
A high-quality granny flat can boost your property’s appeal and market value.

4. Adapt to a Changing Lifestyle

In today’s world, flexibility is everything. Whether you work from home, run a small business, host guests, or just need a quiet place to escape, a granny flat offers the space to suit your lifestyle.

Granny flats can function as a home office, creative studio, guest suite, or private retreat and can evolve with your needs over time.

Granny flats can flex with your life — work, guests, hobbies, or retreat
Granny flats can flex with your life — work, guests, hobbies, or retreat

5. Faster Approvals and a Smoother Process

At Wollongong Granny Flats, we handle everything from concept and design to approvals and final handover.

Most of our projects qualify for a Complying Development Certificate (CDC), meaning you can skip the full council DA process and enjoy faster approvals and shorter build timeframes.

We handle it all — from council approvals to final handover
We handle it all — from council approvals to final handover

Ready to Explore Your Options?

If you’re considering a granny flat in 2025, we’d love to help. Get in touch to book a free consultation and desktop assessment, and let’s explore what’s possible for your property.

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