Granny Flat Investments

Granny flats are a great investment addition to a property portfolio. We can say this confidently, as we have seen dozens of our clients get a positive return on their investment.

The team at Mortgage Partners Australia have looked into this in detail and found that it’s a great way to convert a negatively geared property to positively geared, with minimal capital outlay. They lay out a scenario whereby the yield of the example property shifts from 8.59% to 15.18% with the addition of a granny flat 100 per cent financed at $125,000. If you are a savvy property investor we urge you to read this article – just click here.

Example of how a granny flat can put money in your pocket

Below is a simple example of how you could have a positively geared investment earning you $10,000 per year.

A granny flat can provide:

  • A positively geared investment, giving you an extra $195 each week in your hand or $10,000 per year.
  • Rental yields of 15% each year.
  • Tax depreciation benefits of up to $6,000 per year.
  • A tangible asset that you can see and touch.

Return On Investment Calculator

Cost to Build a Granny Flat ($)
Rental Income Per Week - Granny Flat ($)
Current Mortgage Interest Rate (as a %)
Rental Income Per Year - Granny Flat 0
ROI - on Granny Flat0
Annual Repayments on Granny Flat Investment
Net Annual Return on Investment 0
Net Monthly Return on Investment 0


This calculator is designed to be used as an indication only, and when used alone, does not constitute investment or financial advice. Backyard Granny's strongly recommended you seek the advice of a financial services professional before making any type of investment. The calculator results show the value your property could increase by when adding a granny flat.