Hello

I do not know your personal situation in relation to be able to get more credit, equity in your current property, your income etc.

A Granny Flat is always a great way to turn a Negative property into a positive.

I am in NSW. Apparently the rules and regs in VIC are some of the most strict in the country, but something definitely worth looking into. Size of land can be a consideration for approval, and some exclusions apply, eg Acreage or Heritage Listed.

Check with the local council for approvals.

A rule of thumb of what you can rent a Granny Flat for (check with your local agents for rates) is a small three bedroom house less $100 per week.

People in Sydney are renting Granny Flats from anywhere from $250 for a one bedroom and $350 and up to $750 per week for a two bedroom (depending on area).

I hope this helps

Chris Mc