Granny Flats & Secondary Dwellings in NSW: What You Need to Know

Granny Flats & Secondary Dwellings in NSW: What You Need to Know

More space. More value. More ways to live – all in your own backyard.

Whether you're helping an ageing parent stay close to home, giving your grown-up kids some independence, or adding a potential income stream, granny flats are one of the smartest ways to make the most of your property.

But before you start drawing up plans, there’s a bit to understand about how granny flats work in New South Wales, especially if you want the process to be smooth, legal, and worthwhile. That’s where working with the right builder in Wagga becomes key.

Let’s break it down.

What Is a Granny Flat or Secondary Dwelling?

A granny flat is a self-contained home built on the same lot as your main residence. It can be attached or separate, but it must have its own entrance, kitchen, bathroom, and living space.

In NSW, it’s officially known as a “secondary dwelling,” and it’s allowed in many residential zones, but only if you meet the right conditions.

Can I Build a Granny Flat on My Property?

Here’s the short answer: maybe. But it depends on a few key factors.

To build a granny flat in NSW, your property must meet minimum requirements. Generally, you’ll need:

  • A lot size of at least 450m²

  • An existing primary home on the site

  • Enough space to meet setback and privacy rules

  • Approval through either a Complying Development Certificate (CDC) or a Development Application (DA)

The CDC is often the quicker option. If your property meets a clear set of rules, you can skip the usual council red tape and get faster approval through a private certifier. But if your site is a bit more complex, a DA through your local council will be required.

A trusted builder in Wagga who understands local planning laws can help you determine the best approval path.

Design Options That Fit Your Life

One of the best things about modern granny flats is how flexible they’ve become. Whether you're after a small studio, a one-bedroom retreat, or even a two-bedroom unit with outdoor space, the options are wide open.

At Stanley Homes, our team works with each client to make sure the layout fits their lifestyle and their land. Need wide doorways and step-free entries for ageing parents? Want something compact but still stylish for future tenants? We've done it all.

As experienced house builders in Wagga Wagga, we know how to maximise your block and create secondary dwellings that don’t feel like an afterthought. We’ll help you choose the right footprint, orientation, and features to suit your goals and your budget.

Granny Flats Add Real Value, But Not Just Financially

It’s no secret that granny flats can boost property value. Depending on the build, they can increase your home’s market appeal and create a steady rental income. For some families, it even opens the door to multi-generational living without losing privacy.

But value isn’t always measured in dollars. Having extra space for family, a peaceful place to work from home, or even a future downsizing option means you’re investing in flexibility. And that’s hard to beat.

What’s the Cost to Build a Granny Flat in NSW?

Pricing varies in Wagga Wagga and regional NSW depending on size, finish, and whether site work is needed.

Keep in mind: the cheapest quote isn’t always the best option. We’ve seen builds go sideways when the wrong team is involved or when shortcuts are taken to cut costs. With Stanley Homes, you get clarity, transparency, and quality from start to finish.

Tax & Legal Considerations

If you’re building a granny flat for a parent or dependent with a formal agreement in place, you may qualify for a capital gains tax (CGT) exemption when you sell. But if you're renting it out, the income will need to be declared and taxed like any rental property.

It’s always smart to speak to your accountant before building, especially if you’re factoring in income or future resale value.

Approvals First, Build Second, Always

One of the biggest mistakes we see? Rushing into the build without proper approvals in place. Some builders promise to "handle it all" but will tie you into contracts before you even know what’s allowed.

At Stanley Homes, we flip that approach. We help you understand your options, get the right planning advice, and only proceed when it’s the right move for your block, your budget, and your future.

Who Are Granny Flats For?

  • Retirees & Elderly Parents: Stay close to family while maintaining privacy

  • Young Adults or Uni Students: Give them independence without moving away

  • Investors: Tap into dual income potential with rental opportunities

  • Homeowners Future-Proofing: Downsize later and stay on the land you love

Granny flats aren’t just trendy, they’re practical, flexible, and smart. Whether you’re in the early stages of planning or ready to build, the right partner makes all the difference.

Why Work with Stanley Homes?

We’re local. We know Wagga. And we’ve helped countless families across the Riverina build homes and granny flats that stand the test of time. As trusted home builders in Wagga Wagga NSW, we combine local knowledge with over 30 years of experience and honest, personalised service.

Our builds aren’t cookie-cutter. We work with you, your block, and your goals to create something that fits, practically and financially.

Ready to Build a Granny Flat That Works for You?

At Stanley Homes, we help families, retirees, and investors make the most of their space with well-designed granny flats and secondary dwellings across Wagga and surrounds.

From approvals to handover, we guide you every step of the way with transparent quotes, smart design advice, and quality craftsmanship.

Let’s build something that fits your life and adds long-term value.

Vanessa Stanley