Getting into the property market as a first home buyer in Victoria is no easy feat. Rising land prices, tight lending conditions, and increased competition make it harder than ever to secure a home that balances both lifestyle and long-term value. But there’s one option gaining traction fast: house and granny flat packages.
Instead of building a single home and waiting years to unlock its full value, more buyers are turning to dual-living setups. These allow you to generate rental income from day one or accommodate family members in a flexible, future-proof way. This blog explores why house and granny flat combos are ideal for first home buyers and how Innovista Group makes the process simple, affordable, and high-return.
Why First Home Buyers Are Looking Beyond Single Dwellings
A traditional house-and-land package gives you ownership, but not much else in terms of income generation or flexibility. If you’re spending $650,000 to $750,000 on your first property, you want every square metre of your land to work for you.
Building a home with a secondary dwelling opens multiple opportunities:
- Earn rental income from the granny flat to offset your mortgage
- House elderly parents, adult siblings, or even your own future family
- Future-proof your property for resale.
In an environment where affordability is tight and inflation affects day-to-day costs, having a second dwelling can provide essential financial breathing room. Even beyond your first few years in the home, this setup gives you flexibility to respond to many life changes.
Why Werribee and the Western Growth Corridor Make Sense
Suburbs like Werribee, Tarneit, and Wyndham Vale offer the perfect setup for first-time buyers looking to build both a home and a granny flat. These areas offer:
- Larger lots (500m² and up)
- Fewer design overlays and easier planning pathways
- High rental demand from local workers and students
- Government investment in infrastructure, schools, and transport
Werribee, in particular, sits within Melbourne’s strategic growth zone. This means buyers who invest now in properties with dual-dwelling potential are likely to benefit from both capital growth and sustained rental demand.
Innovista Group has completed dozens of dual builds in these growth corridors. The demand for self-contained rentals remains high, with 1 and 2-bedroom granny flats fetching between $300- $450 per week, depending on location, features, and proximity to services.
How Much Does It Cost to Add a Granny Flat?
Granny flats are more affordable and are the Smartest Investment Property In 2025 than most buyers realise. For example:
- Lana 43 (1-bedroom) starts around $173,000
- Lana 60 (2-bedroom) starts around $208,000
These prices include full turnkey finishes, kitchen, bathroom, flooring, air conditioning, and double-glazed windows. These aren’t budget cabins, they’re high-performance homes built to meet Victoria’s building codes and energy requirements.
When included in your first build, the cost of a granny flat can be integrated into your mortgage. By spreading the repayment over 25 to 30 years, you’re adding only a small amount to your monthly outgoings, often less than what you’ll generate in rental income.
Rental Income Changes the Game
What if your first home helped you build equity and reduce your living costs from the start?
Let’s say you build a 2-bedroom granny flat and rent it for $500/week. That’s $26,000/year in rental income, potentially covering a third of your mortgage repayments. That’s money you could redirect into offset accounts, renovations, or savings for a second property.
Furthermore, a well-performing asset like a granny flat is typically cash flow positive, which not only strengthens your overall income position but can also boost your borrowing capacity, putting you in a stronger position to acquire your next investment.
Even if you choose to live in the granny flat and rent out the main home, this “reverse strategy” works especially well for young couples or singles looking to minimise expenses while building wealth. It’s a real-world way to get on the property ladder and climb quickly.
What’s more, some buyers use the second dwelling as a short-stay rental to maximise income, especially if located near universities, hospitals, or industrial precincts.
Long-Term Flexibility: Future-Proofing from Day One
Beyond rental income, having a second dwelling offers flexibility that single-home builds cannot. Over time, the granny flat can become:
- A home for ageing parents or in-laws
- A private office or creative studio
- A space for adult children who return home
- A downsizer unit when you want to rent the main house
In other words, it gives you options, something first home buyers need now more than ever.
Why Innovista Is the Ideal Partner for Dual-Dwelling First Builds
Innovista specialises in design-led, compliance-ready granny flats that work with your land and budget. For first home buyers, they provide:
- Custom block assessments with layout planning
- Council and town planning navigation
- Transparent, fixed-price contracts (with no hidden extras)
- Coordination with mortgage brokers to optimise lending options
- Energy-efficient design with high-spec finishes as standard
Their build time of 16 to 20 weeks ensures a smooth, fast-track path to occupancy and income.
Final Thoughts: Build Smart from the Start
Your first home doesn’t have to be your forever home, but it should be your smartest one. A house with a granny flat gives you income, flexibility, and the chance to grow your property portfolio faster than a single dwelling ever could.
For young families, solo professionals, and new buyers thinking ahead, this approach delivers far more than just bricks and mortar. It builds financial momentum.
Innovista Group helps first home buyers take that next step with confidence.
Big value can come in a small footprint. Contact us to see how.
