The Granny Flat That Solved It All
The client
These clients came to me after being unsuccessful at an auction for a house in Croydon Park. They were a professional working couple with one child, and together with one parent, were looking to buy a house. The plan was to find a property with land suitable for building a granny flat, allowing the mum to move in as soon as possible.
While they were confident in searching for properties themselves, they had very specific land criteria to ensure the granny flat could be built without issue. This added a layer of complexity, and understandably, they were becoming frustrated with the lack of suitable opportunities.
We met in November 2024 to run through what they were looking for, discuss market conditions, and align on timing—especially given how close it was to the Christmas period.
What was most important to the client
A block of land that allowed a granny flat to be built under Complying Development Control (CDC). This required a minimum lot size of 450 sqm with at least a 12m frontage (with zero flexibility, as Council rules are non-negotiable).
To ensure a straightforward build under CDC, the property also needed to be free of Council flags such as flood zoning (which applies to about 50% of homes in the Inner West), heritage listings, or any other regulatory overlays.
The existing house needed to be at least 3 bedrooms, ideally with no major renovation required—just cosmetic updates like paint or flooring. This was important as the mum would live in the house while the granny flat was being built.
The house layout needed to include at least one bedroom, kitchen, and accessible bathroom on the ground level.
There had to be enough land between the house and future granny flat to maintain a usable backyard.
At least two off-street parking spaces.
Adequate storage, such as a large garage or attic space.
No pool, due to maintenance concerns.
A strong preference to buy a house without an existing granny flat, as most are small, dark, and built for investment purposes. They wanted the flexibility to design and build one tailored for the mum's needs.
The search
Sometimes a very specific brief can actually make the search easier—it quickly rules out unsuitable properties. In this case, if a block of land didn’t meet CDC requirements, I could disregard it immediately.
Given the specificity of the brief and the limited stock leading up to Christmas, I adjusted my approach:
Used Land Checker to identify streets in their target areas that typically had block sizes suitable for CDC (450 sqm+, 12m+ frontage, no flood/heritage overlays).
Cross-referenced that data with recent sales to identify properties likely to be within budget. It became clear early that liveable houses on blocks larger than 650 sqm were likely to be too expensive.
Reached out to agents who had sold suitable properties previously to check if current owners might be open to selling.
Searched the Council approval register for properties with a recent DA for a granny flat. I letterbox-dropped these homes—even if there wasn’t a granny flat yet, the DA indicated potential for building.
Early Opportunities
We found one promising off-market opportunity in Earlwood—a lovely four-bedroom family home on a large block. Unfortunately, due to the land’s topography and front setback, a 60 sqm granny flat would have compromised privacy for the main house.
Right before Christmas, we considered an on-market option that met the land requirements, but the existing house needed more work than we were comfortable taking on.
During the quieter January period, there were few options. In February, we inspected a stunning freestanding Federation home in Croydon Park. I came across this opportunity while inspecting a different property with an agent in Leichhardt. I always mention my active briefs to agents—you never know what they may have coming up. This agent happened to know of an investor-client who owned several properties, one of which was currently being rented but could be sold. Sadly, it also fell short of our renovation standards.
The Breakthrough
In early March, things changed. We expanded our geographical area slightly—and found a true gem.
Remember how we weren’t looking for a house with a granny flat because most didn’t meet the brief? This property was the exception.
It had a recently built two-bedroom granny flat—modern, light-filled, spacious, and private. (See photos below.)
The main house was also in good condition (though not as modern), ready to move into. It had 4 bedrooms, 2 bathrooms, off-street parking, and a large backyard offering privacy from the granny flat.
The seller was an investor-builder who lived nearby and had overseen the granny flat’s construction himself. After renting out both dwellings a few months earlier, he was considering selling to fund a new project.
The Outcome
The property was completely off-market—the owner was open to selling but wasn’t actively pursuing it. I arranged an inspection of both dwellings, even coordinating around two tenants.
The only concern was the main house kitchen, which had an awkward layout—not ideal for a young family. But we agreed this was a manageable issue compared to building a new granny flat from scratch.
My clients inspected the property and agreed it was a near-perfect match. We still had a few important steps to take: a building inspection, full due diligence (especially confirming approvals for the granny flat), and determining a fair price since it was off-market.
A key part of that due diligence was assessing the kitchen renovation cost. It wasn’t simple—the wall between the kitchen and laundry needed reconfiguring, and there was no existing fridge space. As anyone who's dealt with tradies knows, “quick quotes” aren’t a thing. We worked closely with a builder using photos, drawings, and measurements to get ballpark costs for planning purposes.
Two weeks after the initial inspection, we exchanged on an unconditional contract.
The existing design did not allow space for a fridge in the kitchen. The fridge was kept behind the wall on the right in the laundry.
Learnings
The granny flat had a fixed-term lease running until mid-July 2025. We signed contracts in early April, with settlement in mid-May. We negotiated a clause requiring the vendor to give the tenant notice upon exchange that the lease would not be renewed.
While the tenant was legally entitled to stay until the lease ended, they began looking for a new place early. As a result, they vacated sooner, giving my clients earlier access to the granny flat—a huge win.
