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Hi
We converted our garage into a 1 bed granny flat last year.
As said before you should have no probs with council as long as you jump through their hoops. You could go to the council chambers and see someone that will advise you whether what you are doing is feasible or not before you submit your DA and spend the money, so this can also be a good idea if you are not sure. They can be very helpful and they can advise you on the way to go.
We now have a couple living in the flat and are currently making $175 per week in rent. It goes a long way towards investing in other things.
Good luck with the conversion.Thanks guys for the good advice. Please don’t think I am bagging agents out we have some really good friends that are agents in our area. This particular one just has not done what he promised to do on the signing of the exclusive. However getting over that we will be starting next week to find another agent in our area as we have started a list of things we require from them. Thanks once again.