Hi again Sarah,

The answer is no. Regardless of whether you're building on piers or a slab, Sydney Water's rules are the same. Id get a multitude of quotes for encasement. $20k seems pretty steep to me, It's usually around $1,000 per square meter from my experience.

Brazen.

I'd hire a builder and go back to what I do best.

1. The Government incentive is about to stop – around the time of the federal elections.

2. The scheme doesn't cover individual granny flats. Its more for cluster homes and group homes etc.

Are you applying under the 'Affordable Rental Housing SEPP'? If so, you can simply install a 'dispersion pit' in the rear yard, These are not too expensive and the submitted Drainage Plan would show this detail. The SEPP legislation for granny flats allows, where a property slopes to the rear an no Drainage Easement exists, for the installation of a dispersion pit.

Have a look at this granny flat approval guide: http://www.grannyflatapprovals.com.au/approval-guide/

Cost calculator including dispersion pit: http://www.grannyflatapprovals.com.au/approval-pricing-interactive/

Cheers,

Brazen.

RE: Modular/Transportable Homes

At 99% of Councils these CANNOT be approved under the State 'SEPP' legislation which is the road to granny flat approval in NSW. The reason is long-winded but goes to the definition of a Building under the EP&A Regulations. Only Blacktown Council have ever caught me out on this but it's something to consider.

RE: GRANY FLAT BUILD PRICING

In Sydney, builders can vary in price quite a lot BUT it comes back to what your buying, the quality, the inclusions etc. I mean the BASIX commitments and site costs can vary depending on the block itself + the skill of the architect/draftsperson. Then there's the commitment of the builder vs his profit margin. That's better explained below:

What do I mean by that? Well, Im a skilled, experience project manager and for ME to Owner-Build a 60 sq m granny flat (doing it myself at cost) would cost around $65,000+ for a 2 bedroom, hip-roofed granny flat, weatherboard, on a concrete slab, including site costs, approval, all inclusions- turn-key. How any builder can do it for $60,000 is beyond me. It's actually IMPOSSIBLE. If it was, I'd hire a builder to do it and save my clients $30,000

Decent hardworking builders work on 20-25% margin That means what you or I could do for $70k, they'd do for $90k.

my point is, don't be sucked in by stories of qualified builders (assuming they are qualified?) building the above for $60k- it's just simply untrue. I hire builders for my clients every day and Ive been in the industry long enough to know what they make- and NO-ONE can do a 60 sq m granny flat including site costs, approval etc for that price.

Its just physically impossible, sorry.

If someone can find me a builder who can build the structures you see on my website (http://www.grannyflatapprovals.com.au/granny-flat-designs/2-bedroom/), I'll kick my 3 builders out tomorrow and use him instead  AND I'll pay you $1,000 for your effort.

Serge Panayi

Flat-Pack Homes/Transportable Homes cannot be approved as granny flats under the SEPP, sorry. This is because they're not considered dwellings under the BCA.

Brazen.

Its Just NSW only m8, sorry.

Hi grantos-champos,

The biggest issue with converting a part of an existing house into a granny flat is the Fire-Separation requirements of the Building Code of Australia.

The 2 separated dwellings must be sealed in three dimensions from fire. This means, with a 2-storey separation, that the ceiling/floor barrier must be removed and re-done via a fire-rated material. They must be fully sealed from each other by a physical barrier. This can be VERY expensive for 2 storey home to be honest and will usually require a new ceiling and removal of cornices to achieve it as well etc.

There must also be no stairs internally between the 2 dwellings.

Hi Hadoman,

As an investor, you are in a good position to search for a "granny flat friendly property", which will minimize costs and maximize privacy and separation between the 2 tenants as well.

The block must be minimum 450 sq m and be at least 12 meters wide, measured AT the building line. i.e. measured across the front of the granny flat.

When shopping for a 'granny-flat friendly property' I'd look for the following, in order of importance:

*1. No significant trees in the rear yard

**2. Property slopes (falls) to the street OTHERWISE has a Drainage Easement at the back.

3. Sewer Mains in the front of the block or at/near the rear boundary and not across the middle of the rear yard,

4. Corner Block is always a good granny flat friendly choice, but rare.

***5. having a laneway to the Rear is also very good.

6. Distance from the main dwelling to the rear house of at least 15m. This will allow adequate privacy and separation between tenants.

8. Look for a property that doesnt need any demolition work if possible.

9. Look for a property that has vehicular access to the rear yard (for builder's access).

10. I'd choose Penrith over Blacktown because Blacktown CC charge Section-94 Contributions whilst Penrith do not (as of writing this- may change very soon!).

* Significant tree means a native tree or one that is over 6m tall.

** If the block slopes to the rear and doesn't have an easement, a special pit (called a dispersion pit) has to be designed and built. Add about $2,500 to your build cost- it may still be worth it if the property lists well and has other quality aspects for granny flat development,

*** Under the SEPP you can build right up to a rear boundary which adjoins a laneway, as long as the granny flat is no wider than 50% of the length of the rear boundary. e.g 12.19m rear boundary means a 6.1m wide granny flat can literally touch the rear bdy.

Have a read of my Approval Guide which gets more in-depth: http://www.grannyflatapprovals.com.au/approval-guide/

There's a section 'for investors' looking for the right 'granny-flat-friendly property' as well.

Also have a read of my FAQ which answers some of your other questions:

http://www.grannyflatapprovals.com.au/faq/

I hope this helps you.

Brazen.

I arranged the approval for the local NSW Housing manager in Orange last year. He built a 2-storey granny flat with a local builder. If you contact me i can give you his number- I'm sure he can give you some valuable insights into choosing a local builder as well.

I think with Cadia Gold Mine and other mining works in the areas towards Wellington, rental incomes are quite strong in Orange.

Brazen