The Elephant in the Room
The property podcast for the thinking person.

Episodes

Episode 425: When a Granny Flat Makes Sense — And When It Doesn’t

Granny flats are often positioned as a simple answer to rising house prices, stronger rental income, and multigenerational flexibility. But are granny flats a good investment — or just another property trend?

In this episode, we sit down with Wally Gebrael, Co-Director at Granny Flat Solutions, to unpack the real pros and cons of granny flats in Australia. We discuss what actually determines whether a granny flat investment works, from site feasibility and granny flat approvals to design decisions that impact rental income and long-term value.

Wally breaks down the realities of building a granny flat — including the true cost to build a granny flat, common construction cost misconceptions, and why not every block is suitable despite policy allowing secondary dwellings. We also explore multigenerational living in Australia and how families are using granny flats as practical housing solutions.

Finally, we cover the often-overlooked financial side: granny flat tax implications, capital gains tax considerations, and how to approach tax on rental income from a granny flat. If you’re weighing up the strategy, this episode will help you assess the numbers, the risks, and the trade-offs before committing capital.

Episode Highlights

03:12 — Financial Considerations and Value Addition

06:18 — Challenges in Building Granny Flats

08:44 — Council Regulations and Approval Process

12:56 — Cost and Budgeting for Granny Flats

23:59 — Designing Functional Spaces with a Wow Factor

24:22 — Balancing Cost and Value for Investors and Homeowners

25:37 — Optimal Granny Flat Designs

29:52 — Impact of Interest Rates on Investments

32:03 — Financial Considerations and Tax Implications

37:57 — Common Mistakes in Granny Flat Projects

43:43 — Final Thoughts and Listener Questions

About the Guest

Wally Gebrael is the Co-Director at Granny Flat Solutions, one of Australia’s leading specialists in secondary dwellings. Since establishing the business in 2011, Wally and his team have delivered more than 2,500 granny flats across NSW, navigating everything from straightforward CDC approvals to complex council applications involving flood zones, heritage overlays, and high-constraint sites.

With over a decade at the coalface of design, approvals, and construction, Wally brings a grounded, practical perspective to the granny flat conversation. His insights aren’t theoretical—they’re based on real budgets, real rental outcomes, and the recurring mistakes homeowners and investors make when chasing “easy yield.”

In a market saturated with oversimplified advice, Wally focuses on feasibility, function, and long-term performance—not sales-driven optimism.

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Chris Bates