Maximise Your Rental Income and Unlock Hidden Value in Your Property
An Investor’s Dream in a Changing Market
With interest rates high and housing affordability stretched, investors across Australia are searching for ways to boost rental returns without overextending. One standout strategy? Building a granny flat — or what’s now officially referred to as a secondary dwelling.
Adding a secondary dwelling to your property is now one of the most effective ways to increase rental income and enhance overall property value — especially under the new regulations in Queensland that make the process significantly easier.
How Much Rental Income Can a Granny Flat Generate?
Depending on your suburb, a well-designed 1 or 2-bedroom granny flat can generate anywhere from $350 to $600+ per week. That’s an extra $18,000 to $30,000+ annually in passive income — often with a build cost far less than a full-scale property investment.
This cash flow can:
– Offset your mortgage
– Strengthen your borrowing capacity
– Help you reinvest and grow your portfolio faster
Increase Your Property’s Value by Up to 30%
According to CoreLogic, a secondary dwelling can increase your property’s value by up to 30% depending on size, location, and rental potential. This makes granny flats not just a cash-flow play — but a capital growth strategy as well.
Buyers and valuers increasingly see a secondary dwelling as a premium feature, especially in areas where multi-generational living or rental demand is strong.
Tax Benefits for Investors
Another advantage? You can depreciate the value of the granny flat and its contents — meaning you’ll enjoy ongoing tax deductions that reduce your taxable income. This is especially valuable in the early years post-construction.
Make sure to speak to your accountant about:
– Depreciation schedules
– Construction cost write-offs
– Potential CGT implications (if you sell)
Granny Flats Now Easier to Build Than Ever
Thanks to 2024’s changes in Queensland, granny flats are now classified as accepted development. This means:
– No development application is needed in most cases
– Approvals are faster
– Costs are lower
– You can rent to anyone, not just family
These changes remove major roadblocks and open up new opportunities for investors to build quick, low-risk, high-return dwellings.
The Bottom Line: Cash Flow + Capital Growth
If you’re an investor looking for a low-barrier, high-reward opportunity — a granny flat might be the smartest addition to your portfolio in 2025.