Why granny flat prices got dearer (and how to make them cheaper)

In recent years, people are saying, the cost of getting a granny flat into the backyard has gone ‘through the roof’ compared to what it was only a few years ago. Increased prices can make it hard for people who need the extra accommodation or are hoping to rely on it for the generation of extra income. What are the factors bearing on costs and how can you still save with Backyard Pods?

Factor #1 – increased material prices

The price of raw materials has risen across the board in the building industry. All-steel buildings like Backyard Pods, made from brand-name Aussie steel products like TrueCore®, Colorbond®, and Zincalume® are subject to industry-wide price increases along with every other kind of building product. With the Backyard Pods building kits in numerous sizes, you’re getting the lowest structural cost compared to prefabs and modulars with typical extra margins thrown in.

The Brisbane granny flat below was initially proposed as a home extension. When the homeowner decided to go with Backyard Pods instead of one of the builders who had quoted on their home extension, they reportedly saved “half” of the originally quoted cost. Yes, HALF. Another happy granny flats Brisbane customer!

Factor #2 – increased labour costs

Skills shortages in most Australian cities, combined with an increase in building activities, caused an increase in labour costs for all trades ranging from licensed builders down to average handypeople. Unlike material costs, however, labour conditions can be more dynamic and the cost of construction can be significantly reduced when demand for building and construction services decreases.

DIY projects are not for everyone but when the homeowner has previous building experience and tools, the more DIY effort goes in, the more will be saved on costs. The Melbourne granny flat below  is a fine example of a cost-saving DIY granny flat project and you can see how much it is loved.

Factor #3 – increased compliance costs

While it’s now relatively easy to get granny flat approval in all three States (NSW, VIC, and QLD) the cost of compliance can vary widely. How much does it cost to get granny flat approval? It depends firstly if your granny flat will fall within general guidelines, to know that a more costly development application (or planning permit application) will be not required, then you can understand what it’s likely to cost you. There are other costs with construction compliance, and other application fees, while some councils have a surcharge on secondary dwellings as well. When you’re in the process with Backyard Pods, a bit of research into your site and professional consultation will help you along the way to saving by doing as much of the approval side as you like for yourself.

So, if you’re looking to have a granny flat cheaper in NSW, VIC, or SE QLD. Click below to send us an enquiry.