Granny Flats

Flat Pack Granny Flats vs. Custom Built: Which is Right for You?

Superior Granny Flats Superior Granny Flats Team
calendar-check April 9, 2026

The popularity of granny flats is growing in Australia. Rising costs of housing affordability and that opportunity to have multi-generational living in the one place, is making the idea of a mini-dwelling in the backyard a good idea. They are also adding to the value of a property, giving you wealth for the future.

However, deciding you want a granny flat and executing that plan are two different things. Do you have a cookie-cutter granny flat, delivered in a flat pack that you build yourself? Or do you get one custom made and built for you?

This is what we’ll look at in the article. Superior Granny Flats are 100% Australian owned and made and our team are highly skilled at designing and building granny flats. We have a range of standards available for you, or we can custom build to your specifications. Here’s our take on what style of granny flat is right for you.

What is a Granny Flat?

Granny Flat

A granny flat is a self-contained housing unit which is on the same property lot as the primary family dwelling. These separate dwellings contain their own kitchen, bathroom and sleeping area. They are usually a permanent dwelling that complies with all council regulations.

In Victoria there are some size constraints for a granny flat. They can be no larger than 60 square metres. However, if there are no flooding or environmental factors, often they don’t need a planning permit. You will still need a building permit, and the granny flat can’t be sold separately from the main premise.

They are different to a tiny home in so far as a tiny home is often portable, but a granny flat is a permanent feature.

They are different, again, from a studio or a pod in that studios generally don’t have bedroom and kitchen facilities and aren’t classed as a fully self-contained living dwelling.

Why Are Granny Flats So Popular?

There are some real benefits to having a granny flat on your property, from being able to take care of your parents and still give them independence, to having a source of passive income through renting.

  • Rental income. You can achieve a strong and consistent rental yield from a well presented granny flat. This can ease the cost of living burden for you and help pay off your mortgage quicker.
  • Affordable living. Granny flats can be an affordable alternative for families to live in. Help your parents down-size or give your children some independence while they save up for a home of their own.
  • Increased property value. A well-built granny flat increases the overall value of your property. This makes it a smart long-term investment for future wealth.
  • Versatile alternatives. You can use a granny flat as a home office if you run your own business. They can be a guest house or used as a short term rental such as Airbnb.

If you’re looking for options when it comes to a builder, Superior Granny Flats is the way to go. We proudly serve many areas with top-quality top-quality granny flats in DandenongWindsorHoppers Crossing, and Laverton.

What is a Flat Pack Granny Flat?

A flat pack granny flat is one that is pre-fabricated and comes in a kit delivered to your home. All the walls and floor and panels are included for assembly on site. You can build them yourselves, although if you’re not a plumber or electrician you will need some professional help.

They are cost efficient and are generally cheaper to purchase compared to a fully designed and built modular granny flat. You can assemble a flat pack pretty quickly if you know what you’re doing so there could be very little disruption to your everyday life.

While they are cheaper they don’t skimp on material quality. There are still building standards that must be complied with, so you will still have a good construction once you've assembled your flat pack home.

As mentioned above, unless you’ve got the relevant licences, plumbing and electrical work and the foundations will need to be completed by professionals.

With the benefits you gain from having a granny flat, and as flat pack homes are generally cheaper, people are beginning to see the advantages of adding value to their property without too much outlay.

Pack Granny Flat

What is a Custom Built Granny Flat?

A custom built granny flat is next level. It is a self-contained secondary dwelling that is designed to match your wants and needs. They are built to fit specific property shapes as well. You have complete control over floor plans, optional additions such as wheelchair access and supports all through the granny flat.

Custom Built Granny Flat

You can have a fully tailored design. Our team can help you design your ultimate granny flat to suit your needs and lifestyle. Your granny flat can be designed to look like a miniature version of your home, matching the colour, the tiles and more. This adds a flow to the look of your overall property and is highly desired by people looking to buy.

The customisation can be brought inside as well, with custom cabinets for the kitchen, a bespoke bathroom look and furniture that can help maximise a small floorspace and living area.

You can future-proof your granny flat with ramps and sliding doors or wider doors, for people with accessibility issues, such as elderly parents.

The advantages of a custom built granny flat are that it adds more value to your property than a flat-pack option. Higher quality materials can be used which, again, increases the value of your property as a whole.

The custom build option is also preferable if you have accessibility issues with your property or there are unique constraints, such as the shape of your block or tree coverage.

Which Granny Flat Option is Right for You?

There is a lot to think about when it comes to granny flats such as the space available, the budget you have, and what you’re planning on using it for. We recommend talking to our team about your project so we can help you make an informed decision.

Here is a quick table to help you make your choice a little bit easier.

Flat Pack Granny FlatCustom Build Granny Flat
Pros●     Lower initial cost.
● Fast assembly times.
●     Minimal onsite disruption.
●     Tailored to site constraints and personal style.
●     Ability to customise for residents with special needs.
●     Higher resale value.
Cons●     Limited customization.
●     Potential additional costs for on-site work.
●     Lower durability.
●     Sameness as other flats.
●     Higher cost.
●     Longer construction time.
●     More on-site disruption.
Best for●     Investors looking for quick rental income.
●     Owners who have a restricted-budget.
●     Those wanting a fast ROI.
●     Long term investment.
●     Accommodating family members with special needs.
●     Multi-generational living close to home.
●     Difficult build sites.

Building a granny flat is a big decision, and we're here to make it an easy one. The team at Superior Granny Flats has been helping Melbourne and Brisbane families create beautiful, functional spaces for over 40 years. Tell us what you need, and we'll help you find the perfect solution for your block, your budget, and your family.

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