Last updated October 2026
House and granny flat packages let first home buyers plan a main home and a self-contained backyard home on the same block from day one. Done well, it gives you room for family, flexibility as your needs change, and a second home that can be rented or lived in. This guide explains how house and granny flat packages work in Victoria, which blocks suit both homes, and what the G-Flat™ part of the plan costs.
Key takeaways
- A granny flat in Victoria must sit on the same lot as an existing home and cannot be sold separately.
- The smartest house and granny flat packages are planned together, so the block, services and siting suit both homes.
- Lot size, shape, overlays and service locations matter as much as the floor plans.
- A turnkey G-Flat™ costs $195,000 to $265,000, depending on the finish level.
- Speak with a mortgage broker early, because lenders assess a two-home plan differently.
What are house and granny flat packages?
The term covers any plan where a first home and a granny flat are designed for the same block. In Melbourne, that usually happens in one of three ways:
- You buy a house and land package in a new estate, then add a granny flat once the main home is built.
- You buy an established home on a larger block and add a granny flat behind it.
- You already own a home and add a granny flat for family, guests or rental.
Innovista builds the granny flat part of the plan. The standard G-Flat™ is a 60m² turnkey build designed to sit comfortably beside a new or established home, and we plan it around your main house from the first site visit. If you are still choosing a block, our guide to house and land packages with a granny flat covers what to look for in a new estate.
Why first home buyers are looking at both homes
A first home is a big commitment, and a second dwelling on the same block can make that commitment more flexible over time. Common reasons include:
- Family: keeping parents close while everyone keeps their own space.
- Adult children: giving a teenager or young adult a proper place of their own. See can a granny flat be your teen’s first home?
- Rental: renting the granny flat to help with household costs, under Victoria’s residential tenancy rules.
- Future plans: using the space as a home office, guest suite or downsizing option later.
Because the right use can change over the years, the best plans keep the granny flat fully self-contained, with its own kitchen, bathroom and laundry.
How the rules work in Victoria
Victoria treats a granny flat as a small second dwelling. The key rules for house and granny flat packages are:
- The granny flat must be 80m² or less and include a kitchen, bathroom and toilet. From 15 October 2026, the maximum size of a small second dwelling increased from 60m² to 80m² under Amendment VC306. Read our guide to the 80m2 granny flat rules in Victoria (link to https://innovistagroup.com.au/80m2-granny-flat-victoria/).
- It must sit on the same lot as an existing home, which is why you can’t build a granny flat on empty land.
- It cannot be subdivided or sold separately from the main home.
- It must not be connected to reticulated natural gas.
- A building permit is always required, and lots under 300m² or properties with overlays usually need a planning permit.
For new estates, that means the granny flat is usually built once the main home is in place. Planning both together from the start avoids redesigns and keeps services and access simple. Our granny flat compliance guide for Victoria explains each rule in more detail.
Choosing a block that suits both homes
The block decides what is practical. When you compare land for house and granny flat packages, check:
- Lot size: lots of 300m² or more avoid the extra planning permit in most residential zones, and larger lots leave more room for yards and separation.
- Shape and width: wide, regular blocks give the most options, while narrow lots need a long, slim layout.
- Access: a clear path from the street for construction and for the people living in the granny flat.
- Overlays: heritage, bushfire or flood overlays can add steps, so check before you buy.
- Easements and covenants: some estates have covenants that limit what you can build. See restrictive covenants.
- Services: the closer water, sewer and power are to the planned granny flat, the simpler the connection.
Many first home buyers look at growth areas with larger lots. Our guides to the top 10 suburbs for granny flats, Werribee, Pakenham to Cranbourne and Craigieburn cover local block sizes and council rules.
Designing two homes that live well together
Two homes on one block only work if both feel private. When you plan house and granny flat packages, think about how people will move around the site day to day:
- Separate entries: a path to the granny flat that does not run through the main home’s living areas.
- Window placement: avoid bedrooms and living areas looking straight into each other.
- Outdoor space: give each home its own patch of yard, deck or courtyard.
- Noise: place bedrooms away from shared driveways and the main home’s living room.
- Parking and bins: decide early where cars, bins and deliveries will go.
Every G-Flat™ includes a landing with decking as standard, and Signature and Luxe extend it to 20m² and 40m². That outdoor space helps the granny flat feel like its own home rather than an extension of the main house. Our guide to designing a granny flat that feels like a full-size home has more ideas.
Which G-Flat™ floor plan suits your block?
All five G-Flat™ floor plans are 60m² and cost the same within each finish level, so you can choose purely on fit.
- Stella: an L-shaped layout for corner blocks and irregular yards.
- Aurora: long and narrow for tight or side-access blocks, common in newer estates.
- Lana: a balanced layout that fits most suburban backyards.
- Lana 2: a second bathroom for added privacy, which suits shared living.
- Sirius: a square layout with large bedrooms and an L-shaped kitchen.
A free site assessment checks your block and recommends the layout that works best beside your main home.
What the G-Flat™ part costs
The standard G-Flat™ is a 60m² turnkey build with a fixed price for each finish level.
| Finish level | Turnkey price |
|---|---|
| Affordable Lite | $195,000 |
| Affordable | $208,000 |
| Homestead | $218,000 |
| Signature | $238,000 |
| Luxe | $265,000 |
Each price includes the building permit, all plans, connection of services up to 10m from the main house and a 10-year structural warranty. For a full breakdown of what each finish level adds, see granny flat pricing in Victoria.
Prices are a guide for a standard 60m², two bedroom G-Flat™ and depend on your site. Sites 70km or more from the Melbourne CBD attract a 12.5% regional surcharge, sites with no driveway or tight backyard access attract a $7,000 surcharge, and sloping or elevated sites can affect the final price. A free site assessment confirms the price for your block.
Financing house and granny flat packages
Finance is where planning ahead matters most. First home buyers usually fund the main home with a home loan and then fund the granny flat through savings, equity in the home or a construction loan. Lenders look at each situation differently, so a mortgage broker can tell you what is realistic before you commit to a block.
It is also worth checking which first home buyer support you may be eligible for. The State Revenue Office Victoria first home owner page explains the current grants and concessions. Our guides on how to finance a granny flat build and granny flat grants in Victoria cover the options for the granny flat itself.
Planning the timeline
A simple order works best for most house and granny flat packages:
- Choose a block with room for both homes and check the title, zoning and overlays.
- Plan the siting of the main home so the granny flat, access and services fit behind or beside it.
- Build or settle on the main home.
- Book a site assessment for the G-Flat™ and confirm your floor plan and finish level.
- Allow approximately 5 months for the G-Flat™, from planning through to handover.
Mistakes to avoid
- Buying a block before checking covenants, easements and overlays.
- Siting the main home in a way that blocks access to the backyard.
- Assuming a planning permit is not needed on a lot under 300m².
- Leaving finance until the main home is finished.
- Designing the granny flat over 80m², which takes it outside the small second dwelling rules.
Frequently asked questions
Can I build a house and granny flat at the same time?
The granny flat must sit on a lot with an existing home, so it is usually built once the main home is in place. Planning both together still saves time.
Can I sell the granny flat separately?
No. It cannot be subdivided or sold separately from the main home.
How much does the granny flat part cost?
A turnkey G-Flat™ costs $195,000 to $265,000, depending on the finish level and your site.
Can I rent out the granny flat?
Yes. Residential tenancy requirements apply if you rent it to tenants.
Which floor plan suits a narrow block?
Aurora is designed for long, narrow and side-access blocks.
Do house and granny flat packages suit first home buyers?
They can, if the block suits both homes and your finance is planned early. A broker and a site assessment help you decide.
Plan both homes the right way
House and granny flat packages work best when the block, the main home and the granny flat are planned together. Book your free site assessment or visit our display G-Flat™ to see the finishes and talk through your plans.