The Step-By-Step Guide To Building A Granny Flat In Victoria

by | Jun 30, 2025

In today’s fast-changing property market, building a granny flat isn’t just a smart financial move; it’s a practical solution for modern families, downsizers, and investors alike. Whether you’re adding extra accommodation for elderly parents, creating space for grown-up kids, or looking to generate passive income, a second dwelling offers remarkable flexibility.

If you’re thinking about how to build granny flat Werribee or anywhere in Melbourne’s fast-growing outer suburbs, understanding the process step by step will help you avoid common mistakes and build with confidence. That’s why we’ve created Granny Flat Approvals: Everything You Need To Know, a guide that breaks down every stage of the approval process so you can move forward with clarity.

At Innovista Group, we’ve helped hundreds of homeowners across Victoria transform their backyard space into high-performing, council-approved second dwellings. This comprehensive guide is designed to walk you through everything,  from concept to keys.

Step 1: Understand Your Site – Feasibility Comes First

Before picking tiles or choosing a floor plan, it’s essential to understand what your block allows. Every property is unique,  from setbacks and slopes to overlays and easements,  so a detailed feasibility assessment is the foundation of a successful build.

Here’s what gets reviewed in this phase:

  • Lot dimensions and shape
  • Site slope and soil condition
  • Existing infrastructure (like sewer, stormwater, and power)
  • Title restrictions, zoning codes, and overlays
  • Access for construction and ongoing use

This stage helps determine whether a granny flat is feasible, what size is possible, and what approvals are required. Innovista Group offers a free 15-minute consultation to provide clarity and direction from the start.

If you’re planning to build a granny flat in Victoria, Tarneit, or any other growth corridor, this first step ensures you’re not wasting time or budget on an unviable site.

Lana 60

Step 2: Tailor Your Design To Your Lifestyle And Block

Once your land is confirmed as suitable, the design process kicks off. This is where functionality, compliance, and personal taste meet.

At Innovista, we offer two popular design series:

  • Lana 43: A compact, one-bedroom layout
  • Lana 60: A spacious two-bedroom option with multiple façade styles

You can choose between Signature and Luxe finish levels depending on your budget and aesthetic. Every plan is flexible,  layouts can be flipped, entry points moved, and windows repositioned to maximise privacy and sunlight.

Key things to consider during design:

  • How will the dwelling be used? (Rental, family use, guest house)
  • Who will live there, and do they have mobility or accessibility needs?
  • Where are the neighbouring windows and fences?
  • What internal features will help it feel like a home, not a cabin?

Our in-house designers work closely with you to create a space that suits both the land and the people who’ll use it.

Step 3: Navigating Council – Do You Need A Planning Permit?

Depending on your site and suburb, you may be able to build without a planning permit thanks to the new Small Second Dwelling (SSD) pathway introduced in Victoria. This allows many residential lots to add a granny flat “as of right” if certain criteria are met.

However, not all blocks are eligible. You may still need a planning permit granny flat Victoria if:

  • Your site is in a heritage overlay or bushfire-prone area
  • The property is under 300m²
  • You’re located in a rural or green wedge zone
  • You’re exceeding site coverage or building height limits

Navigating these requirements can feel overwhelming, but don’t worry,  Innovista takes care of it. We prepare the full planning submission, including working drawings, site layouts, energy reports, and negotiations with council officers.

This stage typically takes 4 to 16 weeks, depending on your local council’s responsiveness.

Step 4: Building Permits And Engineering

Once planning is either approved or confirmed unnecessary, we move into the technical side,  obtaining a building permit. This is essential before any work begins on site.

What’s involved?

  • Soil testing to determine foundation requirements
  • Structural engineering for footings, framing, and wind loads
  • NatHERS assessments for energy compliance (7-star minimum)
  • Stormwater and drainage planning

This detailed documentation is submitted to a registered building surveyor, who ensures it meets all codes and regulations. Once the building permit is issued, you’re ready to build.

Step 5: Construction -Turning Plans Into Reality

Now comes the most exciting part: watching your new dwelling take shape. At Innovista, we break construction down into defined stages to ensure speed, quality, and transparency.

Here’s what that looks like:

  1. Site prep – Clearing, levelling, and fencing
  2. Utilities – Connecting stormwater, sewer, power, and water
  3. Foundations – Stumps or slab, depending on the soil
  4. Framing – Walls, trusses, and roof structure
  5. External cladding and windows
  6. Insulation and linings
  7. Cabinetry, tiling, plumbing, and electrical
  8. Heating/cooling systems
  9. Final walkthrough and quality checks

On average, our builds take 16 to 20 weeks from ground works to handover,  weather and site permitting.

Step 6: Compliance, Certification, And Utilities

Once the build is structurally complete, we finalise everything with full compliance and certification. That includes:

  • Final service connections
  • Smoke alarm and waterproofing certifications
  • Termite protection documentation
  • Occupancy certificate from the building surveyor

We also supply a detailed handover pack with all your appliance manuals, warranty documents, and instructions for maintenance.

This ensures your granny flat is legally compliant, tenant-ready, and stress-free to manage.

Step 7: Move In Or Rent Out

With the project completed and certified, you can move in a loved one, lease it to a tenant, or even list the entire property for sale with a new, high-spec secondary dwelling.

Innovista also offers guidance for:

  • Rental strategy and lease setup
  • Insurance for dual occupancy
  • Landscaping plans to elevate curb appeal

For those pursuing passive income, the additional rent can offer a significant financial buffer or even fund future investments.

build granny flat Victoria

Why Innovista Group Is The Right Builder/Developer For Your Project

Not all granny flat builders are created equal. Innovista Group is different because we don’t just build,  we plan, design, and deliver fully council-approved, turn-key dwellings without outsourcing the important bits.

Whether you’re seeking to build granny flat Victoria residents love or navigating a planning permit granny flat Victoria council requires, we manage it all in-house.

Here’s what you get with us:

  • Fixed pricing (no variations, surprises mid-project)
  • Fast track timelines (as little as 4 months from approvals)
  • Premium finishes that meet modern lifestyle standards
  • Dedicated project coordinators who update you weekly
  • Local knowledge of council rules across Melbourne’s 30+ municipalities

We also specialise in future-ready inclusions: energy-saving features, private outdoor space, sound insulation, and functional layouts that boost rental appeal.

Final Thoughts: Build With Confidence And Purpose

Building a granny flat isn’t just about adding space; it’s about unlocking lifestyle value, financial freedom, and future flexibility. When done properly, it can future-proof your property while providing immediate benefits for your family or tenants. But just how profitable can it be? Can you really earn 10%+ rental return from granny flats? The numbers may surprise you.

By following each step carefully and partnering with the right team, you’ll reduce stress, avoid delays, and maximise ROI.

Interested in building a backyard home for your parents or teens? Contact us to explore the best-fit designs for your block.