Backyard second dwelling
One backyard. A second rent.
A permanent, permit-approved dwelling behind the house you already own — built on a fixed-price contract, and let by the same team that built it.
80
Delivered in two years
8 weeks
On site, straightforward access
7–10 days
From listing to signed lease
Annualised cash-on-cash return
44.2%
60 m² three-bedroom · $155,000 + GST · 80% construction loan at 6.5% interest-only · $500/week rent
How that number is built
- Total investment
- $155,000
- Construction loan (80% of contract)
- $112,800
- Interest, 6.5% interest-only
- −$611 / mo
- Rent, $500 / week
- +$2,167 / mo
- Net monthly cash flow
- +$1,556
- Cash in (paperwork + 20% deposit)
- $42,200
Excludes GST, rates, insurance, management fees and vacancy. Gross, pre-tax. Not financial advice.
The 30 m² runs 41.5% on the same basis.
What goes into it
The spec, opened up
Ten things that decide whether a small building lasts thirty years or ten. Cutaway illustration; final workmanship is set by the contract specification.
← →
Two layouts
Both drawn from approved permit sets
Every dimension below comes from drawings that have been through council, not a brochure concept.
Three bedroom
- External dimensions
- 10.0 × 6.0 m
- Floor area
- 60 m²
- Bedrooms / bathrooms
- 3 / 1
- Separate laundry
- Included
- Ceiling height
- 2.4 m
- Entry
- Step-free
- Build time
- 8 weeks straightforward · 12 weeks constrained
- Target rent
- $470–540 / week
Pre-build paperwork $14,000 + fixed-price build contract $141,000
Pre-build paperwork $14,000 + fixed-price build contract $201,000
Compact studio
- External dimensions
- 10.0 × 3.0 m
- Floor area
- 30 m²
- Bedrooms / bathrooms
- 1 / 1
- Ceiling height
- 2.4 m
- Roof
- Skillion, Klip-Lok Colorbond
- Entry
- Step-free
- Build time
- 8 weeks straightforward · 12 weeks constrained
- Target rent
- $350–420 / week
Pre-build paperwork $12,000 + fixed-price build contract $98,000
Pre-build paperwork $12,000 + fixed-price build contract $128,000
Layouts shown are indicative and taken from approved permit drawings. Final documentation is set by your site conditions and contract specification.
Multi-coat waterproofing, full-height tiling
Walk-in shower with concealed drainage · Hobless, no step
The numbers, in full
What it costs and what it returns
Every input is shown so you can check the arithmetic yourself. Victoria shown; Queensland figures differ and are quoted per project.
| G30 · 30 m² · 1 bed | G60 · 60 m² · 3 bed | |
|---|---|---|
| Pre-build paperwork | $12,000 | $14,000 |
| Fixed-price build contract | $98,000 | $141,000 |
| Total investment | $110,000 | $155,000 |
| Construction loan (80% of contract) | $78,400 | $112,800 |
| Interest at 6.5% p.a., interest-only | −$425 / mo | −$611 / mo |
| Rent | +$1,517 / mo | +$2,167 / mo |
| Net monthly cash flow | +$1,092 | +$1,556 |
| Cash in (paperwork + 20% deposit) | $31,600 | $42,200 |
| Annualised cash-on-cash return | 41.5% | 44.2% |
All prices exclude GST. Basis: 80% construction loan against the build contract, 6.5% p.a. interest-only, rent converted to monthly as weekly × 52 ÷ 12. Council rates, insurance, property management fees and vacancy are not deducted. Rents are target-range reference values ($350/week for G30, $500/week for G60) based on 2026 properties under our management. Returns are stated gross and before tax, and are not financial advice. We are not licensed financial advisers, tax agents, credit providers or lawyers — obtain your own advice.
What letting looks like
Listed, then gone
Six recent completions, six open days, across Melbourne and South East Queensland.
40
Groups through a single open day
7–10 days
Typical listing to signed lease
10–20
Rental applications per property
Typical ranges from properties under our management in 2026 (Hampton Park, Cranbourne, Berwick and similar; occupancy ≥ 90%). Individual results vary with location and pricing.
How the time is used
The approvals run while you are still settling
If you are buying, the two-month settlement wait is when the paperwork gets done — so the build can start the week you get the keys.
Contract goes unconditional
Paperwork starts — design and approvals run in parallel
First payment $12,000 (30 m²) / $14,000 (60 m²)
Settlement — you get the keys
Build contract signed
Second payment 5% of build contract — $4,900 (30 m²) / $7,050 (60 m²)
VIC · straightforward access
8 weeks to completion
Crane or side-access available
VIC · constrained access
Up to 12 weeks
Restricted crane or side access
QLD
About 3 months
Different approval pathway
Indicative timeline. Actual milestones depend on your site, council and finance.
On paper, not on trust
Fixed price means fixed price
We coordinate and supervise
- Built by a registered builder on a Master Builders standard contract
- Drawings, permits, construction and handover all managed by us
- Photographed at every milestone — progress is always checkable
- Handover checked line by line against the agreed specification
- Warranty: 10 years waterproofing · 7 years structural · 6 years workmanship
No hidden costs
FIXED PRICE
The price you sign is the price you pay. No mid-build increases.
- One of the few builders willing to sign a fixed total price
- Any variation outside scope is quoted in writing and only proceeds once you approve
- Class 1a permanent dwelling — not a relocatable, so banks can mortgage it
- NatHERS 7-star energy rating · LHD Silver accessibility standard
Delivered
Real projects, photographed on handover
Photographs of completed builds. Individual finishes vary by contract specification.
Why people do it
A part-time income, from land you already pay for.
A finished granny flat rents for roughly $350–$500 a week in the suburbs we build in. That is a second income arriving every week from ground you already own — and the property carries the value of a second dwelling from the day it is signed off.
The land is already yours
No acquisition, no stamp duty on a second block, no second mortgage on a purchase price.
A permanent dwelling, not a shed
Class 1a construction on a raft slab — banks can value it and lend against it.
One team through to tenanted
Design, permit, build, and letting handled in-house, so nothing falls between trades.
Want to know if your backyard works?
Send us the address. We will check the zoning, overlays, access and setbacks and tell you what can go in — before you spend anything.
Prices, timelines and rents on this page reflect projects delivered in 2026 and are quoted excluding GST. Every site is different: final pricing follows a site inspection and your approved drawings.