Why Granny Flats Are Appealing To Brisbane Buyers, But Need To Be Checked Carefully
On 18th May 2026 I was interviewed on ABC Radio Brisbane Drive to discuss granny flats, buyer demand and the risks homeowners need to understand before building or renting out secondary accommodation.
Listen to a replay of the interview below. My segment appears at the 39 minute mark, and goes for approximately 7 minutes if you want to fast-forward to this.
Granny flats can be very appealing, especially for homeowners looking for extra income or families wanting more flexible living arrangements. With higher interest rates, rising property prices and pressure on housing supply, it is easy to see why more people are looking at ways to make better use of the space they already have.
But as I explained in the interview, a granny flat is not something to treat casually. If it is not approved, insured and used correctly, it can create serious issues for homeowners.
It seems like a great idea, doesn’t it? Get a little bit of income to help out with those high interest rates. But certainly your biggest issue is going to come down to your insurance.
Why Insurance Matters
One of the biggest risks I discussed was insurance. Many homeowners do not realise that once they start earning income from a granny flat, it may no longer be covered in the same way under standard home insurance.
A granny flat used by a family member is one thing. A granny flat rented out for income is different. At that point, it may need to be treated more like an investment property, with the right insurance cover in place.
As soon as you start earning money off the property, it then becomes an investment property. So then you need a very different insurance coverage for that property.
If something goes wrong, whether it is fire, damage or injury, relying on the wrong insurance cover can leave homeowners exposed.
Council Approval And Compliance
We also discussed the importance of council approval. Granny flats are subject to rules and regulations, and these can vary between local council areas.
In Brisbane, for example, granny flats have different requirements to areas such as Moreton Bay or Logan. Size limits, setbacks, distance from the main dwelling and building certification can all come into play.
Every council in Brisbane is different. In Brisbane, you can’t have a granny flat more than 80 square metres. In Moreton Bay, it can’t be any bigger than 55 square metres. And then you go to the Logan area and the largest you can have is 70 square metres.
If a structure does not comply, council may issue fines or require changes. In some cases, homeowners can even be told to remove the structure.
That is why it is so important to get proper advice before building, rather than trying to work backwards after the fact.
What Happens When You Sell?
Another issue raised in the interview was what happens when it comes time to sell.
If part of a property is not approved as a habitable area, it needs to be represented correctly. Buyers, sellers and agents all need to be clear about whether a space is legally approved accommodation or simply a storage area, utility space or non-habitable room.
This can become especially important where rooms have been built underneath a house or where a secondary dwelling has been added without the correct approvals.
It’s certainly got to be sold under the proviso that you’re telling them that it is only a potting shed or storage.
For buyers, this is a reminder to look carefully at what is approved, what is not, and what risk may be attached to a property before purchasing.
Why Demand Is Growing
Despite the risks, granny flats can add real appeal when they are done properly.
During the interview, I spoke about the increase in buyer demand for properties with extra accommodation. This is being driven by a range of factors, including rising property prices, changing family needs, an ageing population and the desire for more flexible living arrangements.
“It is definitely an appealing attraction because property prices have gone through the roof. Families are coming together and trying to live in spaces that are together but still have their own space.”
For some buyers, a granny flat may provide space for parents, grandparents or adult children. For others, it may offer a potential income stream to help make the mortgage more manageable.
When planned, approved and insured correctly, it can be a valuable feature.
Do It Properly The First Time
The key message from the interview was simple: granny flats can be worthwhile, but they need to be done properly.
That means checking council requirements, getting the right approvals, using a building certifier, understanding insurance implications and being clear about any tax obligations if the space is rented out.
“You’ve just got to weigh up those risks and make sure that you do it properly. You never know what may happen in the future and just cover yourself.”
For Brisbane buyers and homeowners, secondary accommodation can be a strong selling point and a practical solution, but only when the details have been considered carefully.
Many thanks to ABC Radio Brisbane Drive for the opportunity to join the discussion.
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