A granny flat can be one of the smartest ways to make better use of your property. Whether you need extra room for family, want to create guest accommodation or are exploring rental income potential, a well-designed granny flat can add flexibility without the cost of buying another block.
What Is a Granny Flat?
In NSW, a granny flat is commonly referred to as a secondary dwelling. It is a self-contained dwelling located within, attached to, or separate from another dwelling on the same site. A secondary dwelling is different from a dual occupancy and is built in conjunction with the principal home.
Why Build a Granny Flat?
Granny flats are commonly used for:elderly parents who want to live nearby with independenceadult children needing their own spaceguest accommodationa flexible work-from-home or lifestyle solutionrental income, where permitted and suitable.

A successful granny flat should feel comfortable, practical and private. Key design considerations include:
Design matters even more when two households share one site. A successful dual occupancy design should carefully consider:
• private entries and circulation
• acoustic separation
• car parking and access
• natural light
• outdoor living areas
• internal layout for independence and comfort
The goal is to ensure both dwellings feel comfortable, practical and considered from day one.
Not every block will suit every type of dual occupancy development.
Zoning, setbacks, parking, access and local planning controls all play a role in what can be achieved.
Perry Homes can help you choose a dual occupancy design that aligns with your land and intended use.
NSW planning guidance makes clear that dual occupancies are a distinct low-rise housing type, separate from secondary dwellings.

Learn from our frequently asked questions when building dual occupancy homes.
A granny flat is a self-contained secondary dwelling built on the same block as an existing home. It can be attached to the main house or built as a separate structure, depending on the design and site.
A granny flat can be used for extended family living, accommodation for elderly parents, space for adult children, guest accommodation, or as a source of rental income.
Whether you can build a granny flat depends on your block size, zoning, existing dwelling, setbacks and local planning requirements. An experienced builder can help assess whether your property is suitable.
A well-designed granny flat can add value to your property by improving the way the land is used and creating additional living or income-producing space.
Key design considerations include privacy, access, parking, natural light, ventilation, outdoor space and how the granny flat will complement the existing home on the site.