Is there a gold mine in your back yard?

Real estate & property news
15 August 2026
Save Article

There’s no doubt that interest in “Tiny Homes” has grown in recent years, making this category of housing quite a popular trend for many. But have you given any thought to the possibility of having a second dwelling, such as a granny flat, in your back yard?

A second dwelling could provide a range of benefits for many, whether you are looking for extra flexibility for extended family members, or the extra income that rent could provide.

With this in mind, I thought you might like a brief outline of what might be involved

1 IS IT POSSIBLE?

The first step is to ensure that your property title does not restrict you from doing this. Look for covenants or other similar limitations.

In Victorian, a small second dwelling of 60sqm or less generally doesn’t require a planning permit in a residential area, but check with the Council as some planning controls can impact this.

2 WHAT ARE THE CHALLENGES?

You will need to confirm site boundaries, usually with a land survey, to confirm the boundaries are current along with setbacks, access restrictions and more before you apply for a building permit. You will also need to decide whether you are going to have the dwelling designed by the builder, use a designer/architect, or use an off-the-shelf prefabricated granny flat.

3 GETTING A BUILDING PERMIT

A Building Permit is required for any new construction in Victoria. This is to ensure that the design meets the relevant siting, safety and construction standards. You will also need to carefully consider your materials at this stage to ensure the new building fits your current home and surroundings.

4 CHOOSING THE RIGHT PEOPLE

Make sure your selected builder and tradespeople have the correct registrations and licenses, not to mention are people that you feel comfortable working with to achieve a positive result.

Now, this is obviously just a short overview of some of the factors you may want to consider when weighing up whether a granny flat is for you. But if you are thinking of renting one out and would like to talk to an experienced rental expert, feel free to give our team at Barry Plant Thomastown a call at any time on 9466 3233.

Best wishes,

Con Constantinou

Barry Plant Thomastown

Real estate & property news
15 August 2026
Save Article

Get more from Barry Plant.
Sign up for our newsletter

Sign up now to stay informed about market trends, investment opportunities, and exclusive property listings. Don't miss out on valuable insights - join our community today!