Granny flats can be financed in Australia using a construction loan or home equity top-up. Site-built 60m² granny flats cost $120,000–$200,000. Rental yields of 12–21% of build cost make them one of the highest-ROI home improvements available.
Yes. The most common options are a construction loan (staged drawdowns) or a home equity top-up (lump sum against existing equity). A construction loan is typically preferred for granny flats over $100,000. You need a licensed builder contract and council or CDC approval.
Yes, in all Australian states. Granny flat rental income can be $18,000–$31,000/year depending on location and can be factored into your serviceability assessment when applying for the construction loan.