As housing trends evolve, more people are exploring alternative options that offer flexibility, affordability, and a chance to downsize without compromising comfort. Among the most popular choices are granny flats and tiny houses, which provide unique solutions for additional living space.
However, despite their similarities, these two options have distinct characteristics that set them apart. This blog will examine the key differences between granny flats and tiny houses, examining factors like size, mobility, cost, utilities, and regulations.
Whether you’re considering adding a granny flat to your property or embracing a minimalist lifestyle with a tiny house, understanding these differences will help you make an informed decision that best suits your needs and lifestyle.
Let’s get straight to the point.
Granny flats and tiny houses offer alternative living solutions but differ in key aspects. Granny flats are larger, permanent structures that add value to your property and generate rental income but are more expensive.
Tiny houses are smaller, mobile, and affordable, ideal for a minimalist or nomadic lifestyle. However, they may face legal challenges due to zoning laws and have limited space. The choice between them depends on your lifestyle, budget, and long-term goals.
Key Differences Between Granny Flats And Tiny Houses
1. Size And Structure
Granny flats are larger, permanent structures often built as extensions of existing homes. They provide a more traditional, self-contained living space. Granny flats can be up to 60m² and are designed for long-term use.
In contrast, tiny homes are significantly smaller, averaging around 37m² or less. These compact dwellings can either be mobile, allowing for relocation, or built on a small, permanent foundation, making them a flexible and versatile housing option for those seeking minimalism.
2. Mobility
One key characteristic that sets tiny homes apart is their mobility. Tiny homes on wheels offer the flexibility to be relocated, allowing owners to move their residences whenever and wherever they choose, providing a sense of freedom and adaptability.
This mobility makes tiny homes ideal for those who value a nomadic lifestyle or wish to explore different locations. In contrast, granny flats are permanently fixed structures built on a foundation designed to remain in one location.
3. Cost
While granny flats and tiny homes offer more affordable alternatives to traditional houses, granny flats generally have a higher price tag. This is due to their larger size, permanent nature, and the additional building requirements for integrating them into existing properties.
The cost of constructing a granny flat can vary significantly, typically from $145,000 to $200,000, depending on the design, materials, and location.
On the other hand, tiny homes are more budget-friendly, with prices starting around $90,000, making them an attractive option for those seeking a more economical, compact living solution.
4. Utilities And Comfort
Granny flats are equipped with all the modern amenities in traditional homes, such as heating, cooling, and full connections to electricity, water, and sewage systems. These features make granny flats a convenient and comfortable option for long-term living.
In contrast, tiny homes, especially those designed for off-grid living, may have a different level of access to utilities. Many tiny homes rely on alternative energy sources like solar power, composting toilets, and water tanks, which can require more effort to maintain.
5. Legal Regulations
Granny flats are subject to building codes and local zoning laws, varying significantly depending on the council. These regulations ensure the structures meet safety standards and are suitable for permanent residence, often requiring permits and inspections during construction.
In contrast, tiny houses, particularly those on wheels, can face legal hurdles due to zoning restrictions and classification issues. In many jurisdictions, tiny houses on wheels are considered recreational vehicles, which means they do not meet the legal criteria for permanent residences.
6. Investment And Long-Term Value
Granny flats are frequently viewed as a valuable long-term investment, enhancing a property’s overall appeal and increasing its market value. They provide additional living space to accommodate family members or generate rental income when leased to tenants, offering a potential revenue stream.
In contrast, tiny homes, especially those on wheels, may deliver a different level of financial return. Due to their mobility and legal restrictions on permanent placement, tiny homes often face limitations on where they can be parked or lived, reducing their potential for rental income and long-term appreciation compared to more traditional property additions like granny flats.
Pros And Cons Of Granny Flats And Tiny Houses
Granny Flats
Pros:
- Extra Living Space
Granny flats provide additional living space that can be used in many versatile ways. Whether you’re looking to house an elderly relative, give older children some independence, or create a comfortable space for guests, granny flats offer flexibility. They can be designed as self-contained units with bedrooms, kitchens, and living areas, making them a practical solution for growing families or those needing extra accommodation.
- Increased Property Value
Building a granny flat can significantly enhance the overall value of your property. Homebuyers are often attracted to properties with additional living spaces that can be rented or used for extended family. Adding a granny flat could make your property more appealing in a competitive market and increase resale value. The long-term financial benefit is a major factor for many homeowners when building a granny flat.
- Rental Income
One key advantage of a granny flat is its potential to generate rental income. Whether you rent it out long-term or short-term through platforms like Airbnb, granny flats can offset the cost of building and maintaining the unit. For homeowners, this extra income can be a valuable source of revenue, allowing the property to start paying for itself over time.
Cons:
- Higher Cost
While granny flats are a great investment, they are typically more expensive to build compared to tiny houses. Due to their larger size, permanent structure, and connection to utilities, the initial outlay can be considerable. Depending on design preferences and materials, costs can range from $145,000 to $200,000, often higher than other small housing options. Ongoing maintenance costs may also be a factor, particularly if the granny flat is rented out.
- Permanent Structure
Granny flats are permanent dwellings fixed to the ground and cannot be moved once constructed. While this provides stability, it limits flexibility for homeowners who want to relocate the unit or change their property layout in the future. Unlike tiny houses, which can be moved to different locations, granny flats require a permanent foundation, making them a long-term commitment to the property’s structure.
Tiny Houses
Pros:
- Affordable
Tiny houses offer a more affordable solution for building a small living space. The starting cost of a tiny house can be as low as $90,000, making it significantly cheaper than building a granny flat or traditional home. This makes tiny houses attractive for budget-conscious buyers or individuals looking to downsize. The smaller house size also reduces utility and maintenance costs, contributing to long-term savings.
- Mobility
One of the most significant advantages of a tiny house is its mobility. Many tiny houses are built on wheels, allowing homeowners to move their residences to different locations. This makes tiny houses an ideal option for people who prefer a nomadic lifestyle or need flexibility in where they live. Relating without the need to sell or rebuild provides freedom not typically associated with traditional homes or granny flats.
- Sustainable Living
Individuals who wish to adopt a more sustainable lifestyle often choose tiny houses. The minimalist design encourages owners to reduce consumption, use fewer resources, and focus on eco-friendly living. Many tiny houses incorporate green technologies such as solar panels, rainwater collection systems, and composting toilets, allowing for off-grid living.
Cons:
- Legal Restrictions
A significant challenge for tiny house owners is navigating zoning laws and local regulations. In many areas, tiny homes on wheels are classified as recreational vehicles, and zoning codes may prevent people from using them as permanent residences. Finding legal places to park a tiny home can be difficult, and local governments may restrict long-term occupancy.
- Limited Space
The small size of a tiny house can be a disadvantage for some. Living in a space typically under 37m² requires high organisation and minimalism. The limited storage and compact living areas may not be suitable for everyone, particularly for families or those with many belongings. Additionally, the confined space can lead to discomfort over time, especially if the layout is not efficiently designed.
Conclusion
Granny flats and tiny houses each offer distinct advantages and challenges, catering to different needs and lifestyles. Granny flats provide a permanent, versatile addition to your property that can increase its value and generate rental income, making them an appealing long-term investment. However, their higher costs and lack of mobility may be drawbacks for some homeowners.
On the other hand, tiny houses are perfect for those seeking an affordable, mobile, and sustainable living option. They allow for a minimalist lifestyle with the freedom to move and explore different locations, though this comes with the trade-off of limited space and potential legal hurdles.
Frequently Asked Questions About Granny Flat
Why Is It Called Granny Flat?
A “granny flat” is called that because it was originally designed as a small, self-contained living space for elderly relatives, like grandparents, to live close to family while maintaining independence. These flats are usually built on the same property as the main house, offering a convenient solution for multigenerational living.
What Is The Purpose Of A Granny Flat?
The space is used for housing elderly relatives, live-in nannies, and guests. Granny flats can be built on any part of your property, including in the basement, converted garage, or as a separate structure. Either way, they create a cozy and convenient space for families.
How Many Rooms Does Granny’s Flat Have?
Generally speaking, a granny flat is a self-contained home with the following properties: 1-2 bedrooms in the property (although occasionally there is another bedroom), Walk-in or separate bathrooms. A small (limited) kitchen, a dining and living area and laundry.
What Is The Smallest Granny Flat?
A granny flat is a self-contained small home of 60m² built in the backyard of an already-existing house. Below are the main council requirements for granny flats: Property must be a minimum of 450m2 in the area (different rules apply for larger block sizes; go to the section: Granny flat setback requirements).
How Close To The Boundary Can I Build A Granny Flat?
Maximum building height of 8.5m, although setbacks change once building height exceeds 3.8m. The property must have residential zoning. 3m setback from the rear and 0.9m from the side boundaries.