Granny Flats v.s. Kit Homes v.s. Modular Homes: Everything You Need to Know
Three of the most popular ways to extend the space on your property in Western Australia are a granny flat, kit home or modular home. Each provides an increase in living space, property value and a potential revenue stream, so you’d be forgiven for thinking they’re the same. There are actually significant differences between granny flats, kit and modular homes, and they’re worth knowing so you can make an educated decision as to which is best for you.
Let’s explore what kit and modular homes are and how they compare with a traditional granny flat.
What is a granny flat?
A granny flat, or secondary dwelling, means a self-contained living unit built on the same property or block as the main house or dwelling. While most flats are detached, separate buildings, they can also be integrated or attached into the main home. Granny flats in Perth are becoming increasingly popular as more people seek to improve the value of their home or the passive income it can generate.
What is a prefab granny flat?
A prefab or prefabricated granny flat means a granny flat which is largely constructed off-site and delivered to your block of land in sections for you to put together.
The delivery time will vary, depending on the manufacturer, as well as council approvals and the complexity of your site. but once the approvals have been granted and the prefab granny flat has been constructed (which can take anything from 4-16 weeks), it can be delivered and assembled in 1-2 days, depending on the distance of your block from the factory.
The modules are delivered to your home, where the foundation will have been pre-prepared. The modules are then ready to be craned into place.
A modular home is created entirely in a factory, and the whole building, completely built, is transported to the site.
Modular homes mean lower onsite building bills as the house gets placed onto the property, gets services attached and receives the finishing touches. One of the important aspects to remember is that you’re still paying building costs – they are just being spent on work in the factory. You’ll also be paying increased transport costs.
The main appeal of modular homes is how quickly they are built. Most are constructed using pre-existing designs and materials that are already in the factory, which makes them a cost-effective option.
Once assembled, it’s just a matter of transporting the home onto your property. Some modular homes only take five or six months from design to moving in.
What is a kit home?
A kit home is almost entirely constructed off-site in a factory. This means that the major pieces of your building are created and transported to the site where they’re put together. The word ‘kit’ is used to describe their simplified process of putting the pieces together like a flat pack or a giant jigsaw. Kits are often used to create portable granny flats, which can be relocated.
The main reason kit homes are so popular is because they’re easily customisable. While they may have a reputation for looking cheap, kit homes now have a level of style and quality much closer to traditionally built homes, often with a lower price tag.
They also end up being more environmentally friendly due to less onsite building and waste production compared to traditional builds.
Comparing the costs
While the costs of each home will vary depending on the individual scope of each project, we can break down the rough costs of a regular granny flat, modular home and a kit home so that you can make a price comparison.
The cost of a modular granny flat will vary, depending on its size, inclusions and site location. Lower end costs are around $100,000 and can go all the way up to the price of a brand new home. Customising your granny flat modular home will increase its costs. For instance, if you want to have a portable granny flat, you might need to consider upping the budget.
Furthermore, size plays a part. Regular homes with multiple bedrooms and two to three bathrooms are going to be more expensive than a modular granny flat. But, if you’re sticking to a modest one or two bedrooms, you can keep the price down. It’s also handy to consider hidden costs that might not factor into the building process, like permits, transport costs, and interior decorating.
How much is a kit home?
A kit home in WA is likely to set you back around $145,000, although this will vary depending on size, the materials you use and the site of your home. The lower end of the scale is likely to exclude the building fees, which will add a significant expense.
Factors influencing the price of a kit home include building permits, delivery, and interiors. Before you put a house down on your property, you need permission to build it. There are usually council fees involved when trying to obtain the appropriate building permits for your home.
Even though kit homes are made off-site, they still need to be transported to your land. Naturally, this involves machinery and labourers to travel, load and unload the various parts of your home. If your property is difficult to access (for example, if you live down a narrow lane that’s hard for trucks to drive through) then this will add to your overall expenses.
Once the home is built, there’s the matter of interiors. Kit homes need kitchens and bathrooms, lighting, and decor. Some fixtures might be included in the building price, but it’s important to factor the inside of your home into the budget.
But there are also additional benefits to building a traditional granny flat rather than opting for a prefab granny flat or kit home.
Custom build
With a regular granny flat, you can customise your design to create something unique that suits your specific needs. Granny Flats WA has a number of designs, but we can also work with you to create something bespoke that you love. This sets a custom built traditional granny flat apart from the more generic kit homes or prefab modular homes, where customisation is more limited.
Built to last
The advantage of choosing to construct a traditional granny flat over a prefab or a kit home is that it’s tailored to site conditions. We’ll pour the slab, taking into account the characteristics of your block, as well as using high quality materials and integrating your granny flat with your existing home.
This achieves a longer-term quality home that’s perfect for use either as an extension of your family living areas or a stand-alone rental property that will stand the test of time.
What should you consider before choosing a granny flat over modular or kit homes?
When it comes to a build, everybody has different priorities, so it’s worth considering yours before you opt for a granny flat over a modular or kit home. You will need to consider the purpose of your granny flat, the layout you want and the timeline you’re envisioning before you make your decision.
The purpose of your granny flat
Is your granny flat intended as a secondary space for your family or a dwelling that you’re going to rent out. Who are you expecting to live in it? If you’re expecting an elderly person to live in the granny flat, you will need to think about accessibility and it’s worth investing in quality materials for safety purposes.
The layout you want
The layout that you want will also have an impact on which type of granny flat you decide to choose. Opting for a traditional granny flat will give you the chance to customise your floor plans to make sure you get exactly what you want.
What your timeline is
While opting for a prefab granny flat or a kit home might seem like a quicker option, you need to remember that you will still need to get council approvals, as well as having all the services connected.
Opting for a granny flat that has been constructed off-site and is not subject to weather conditions and other potential on-site delays will be quicker, but it will still take time.
Local regulations
As we mentioned above, every type of dwelling will be subject to local councils’ approvals and will also need to be compliant with local regulations. If you build with Granny Flats WA, we take care of all council submissions and approvals, ensuring that your build process goes smoothly.
Frequently Asked Questions
While we are happy to answer any queries you might have about building a granny flat, why not check out our FAQs to see if your question has already been answered.
What’s the ROI on a granny flat rental in Perth?
It’s hard to quantify the return on investment or ROI on a granny flat because there are so many variables. How much you spend to construct your granny flat versus how much rental income it generates will dictate the ROI.
Adding a granny flat to your property in Perth, WA, can significantly add value to your property. There are plenty of different uses for a granny flat that make it universally appealing. It makes your home more versatile, offers a source of passive rental income or a separate home office, as well as appealing to multi-generational families or those who regularly host overnight guests.
If you’re unsure about whether or not you want to rent your flat out but still want to generate a passive income, you could also consider using your granny flat as an AirBnB property.
What size granny flat can I build without DA approval?
The rules for building granny flats in Perth were significantly modified in April 2024, making it much easier to build a granny flat without needing a Development Application (DA) or planning permission.
You can build a granny flat up to 70sqm in size without needing planning approval. There’s also no minimum lot size, although adding a granny flat cannot exceed the dwelling limits for the R-code density that your property falls under.
Can I use my granny flat as a home office?
You can definitely use your granny flat as a home office. Using a granny flat as an office pod is a really popular usage. If you are planning on using your granny flat as commercial premises, for example as a workshop or salon, you will need different planning permissions.
What’s included in your granny flat packages?
Our tailor-made granny flats include the following:
Design consultations and advice
Drafting
Engineering
Council submissions
Pre-start service
Quantifying, ordering and scheduling
Construction
Warranties
Contact us
Have a chat with one of our friendly team or visit our showroom (where we have three full-size granny flats constructed) to see if our custom designs are right for you. You can also get more information from our articles.
