You’ve invested in building a granny flat on your Melbourne property. It’s served your family well or generated rental income. But now you need to sell. What happens to granny flats in Melbourne when properties change hands? Understanding how secondary dwellings affect property sales helps you plan appropriately and maximise your investment’s value.
Granny Flats Stay With the Property
Granny flats in Melbourne cannot be subdivided or sold separately. Victorian regulations explicitly prohibit subdividing secondary dwellings onto separate titles. When you sell your home, the granny flat transfers to the new owner as part of the overall property package. You cannot sell the granny flat to one buyer and your house to another.
Impact on Property Sale Price
Well-built granny flats typically increase property values significantly. Research suggests houses with granny flats in Melbourne potentially command premiums of $150,000-250,000 compared to similar properties.
However, actual value increases depend on location, construction quality, and market conditions. The granny flat cost in Melbourne for your build doesn’t necessarily equal the value it adds to your property.
Understanding Buyer Appeal
Granny flats in Melbourne attract specific buyer types. Multigenerational families actively seek properties with secondary dwellings. They want spaces accommodating elderly parents or adult children while maintaining privacy.
Property investors value granny flats for rental income potential. Dual-income properties appeal to investors seeking strong returns.
However, some buyers view granny flats negatively. They might want larger yards without structures. Understanding these perspectives helps manage sales expectations.
Marketing Your Property
Effective marketing emphasises granny flat benefits while acknowledging versatility. Highlight multiple use cases: rental income, multigenerational living, guest accommodation, home office, or teenage retreat.
Professional photography matters significantly. Show both dwellings well-presented and furnished appropriately. Provide rental income history if applicable. Documented rental returns help investors calculate potential yields.
Essential Documentation
Ensure all granny flat documentation is current and accessible. Important documents include building permits, final inspection certificates, compliance certificates, energy rating certificates, and occupancy permits.
Properties with non-compliant granny flats create significant problems during sales. Buyers discover compliance issues during inspections, which either kills sales or drastically reduces offers.
Managing Existing Tenancies
If your granny flat in Melbourne currently houses tenants, Victorian tenancy laws protect sitting tenants during property sales. Fixed-term leases continue under new ownership. New owners must honour existing lease terms.
Some buyers prefer vacant possession. Others appreciate tenanted properties providing immediate income. Marketing should clarify tenancy status clearly.
Disclosure Obligations
Vendors must disclose material facts about granny flats, including any building issues or compliance problems. Failing to disclose creates legal liability. Honest disclosure protects sellers legally while building buyer confidence.
Calculating Investment Returns
Your granny flat cost in Melbourne represents the initial investment. Add rental income received over your ownership period. Calculate property value increase attributable to the granny flat.
However, isolating granny flat contributions from overall market movements proves difficult. Consider non-financial returns too—did it enable family proximity or provide housing security?
What New Owners Can Do
New owners acquire full rights to granny flats. They can continue current uses, change purposes, rent differently, house family, or even demolish structures. You cannot impose restrictions after sales are complete.
Timing Your Sale
Market conditions affect how granny flats in Melbourne impact sales. During seller’s markets, they add substantial value. Properties with granny flats typically take similar time to sell as comparable properties, assuming appropriate pricing.
Preparing for Success
Early planning maximises values. Ensure compliance documentation is complete. Address maintenance issues. Consider professional styling. Work with agents experienced in marketing properties with secondary dwellings.
Our turn-key service starts from $173,000. Our Signature package at $208,000 and Luxe package at $240,000 create quality granny flats that add genuine value when you eventually sell.
Moving Forward With Confidence
Selling properties with granny flats involves different considerations than standard sales. If you’re planning to sell your Melbourne property with a granny flat, Innovista’s Sales & Marketing service can help. We craft strategies that maximise market exposure and sales potential, ensuring your granny flat investment is positioned effectively to attract the right buyers. Contact us to discuss how we can support you through the selling process.
