Granny Flat Rental Yield & ROI Calculator
Calculate gross and net rental yields, weekly positive cashflow, payback timelines, and Division 43 tax depreciation benefits for secondary dwellings in Australia.
Real Australian market medians
Division 43 tax estimates
Granny Flat Investment FAQ
What is a good rental yield for a granny flat in Australia?
Granny flats typically deliver gross rental yields between 12% and 18% in Australian metropolitan and regional centres. Because you already own the underlying land, your construction capital generates significantly higher percentage yields than purchasing a standalone investment house or apartment (which typically yields 3% to 5%).
Can I legally rent a granny flat to non-family members in Australia?
Yes, in most Australian jurisdictions. NSW, Victoria, Queensland, Western Australia, and the ACT permit renting secondary dwellings to private, unrelated tenants on separate leases. South Australia and the Northern Territory have stricter local council zoning caveats that require prior verification.
Can I claim tax depreciation on a newly built granny flat?
Yes. If rented to produce income, you can claim Division 43 Capital Works depreciation at 2.5% per annum of eligible construction costs over 40 years. You can also claim plant and equipment depreciation (Division 40) on appliances, hot water systems, and air conditioning.
How much does a 2-bedroom granny flat rent for in Australian capital cities?
As of 2026, 2-bedroom secondary dwellings generally rent for $550 to $750/week in Sydney, $420 to $550/week in Melbourne, $480 to $620/week in Brisbane, and $450 to $580/week in Perth, depending on proximity to transit, finishes, and private access.
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