Don't sell what you've spent a lifetime building. A Prestige Living granny flat lets you move into a brand-new, low-maintenance luxury home in your own backyard — while your main house either generates rental income or becomes the family home your children have been waiting for.
Granny flat builds from $130,000 · Rent your main home for $25,000–$35,000/yr — or hand it to the family
Most Australians assume downsizing means selling the family home and starting over somewhere smaller. But a growing number of Melbourne retirees are discovering a far superior alternative — downsizing with a granny flat. Build a luxury site built granny flat in your backyard, move in, and let the main house pay for retirement. [Source: innovistagroup.com.au]
Your community, your local shops, your garden, your memories — all of it stays. A Prestige Living granny flat puts you in a brand-new home without uprooting everything you've built around you.
Single-level, low-maintenance, energy-efficient and architecturally beautiful. Our accessible granny flat designs are purpose-built for retirement living — with 7 star energy ratings keeping your ongoing costs to a minimum.
Once you move into the granny flat, your main home can do one of two powerful things — generate $25,000–$35,000 per year in granny flat rental income from a paying tenant, or become the home your adult children move into. Many families are finding this the most elegant solution of all: Mum and Dad downsize to the new granny flat, the kids finally get a home they can afford, and everyone ends up closer together on the same block.
NewsHub — December 2025 [Source]
Retirement villages and traditional downsizing both come with costs that erode the wealth you've spent decades building. A Prestige Living granny flat on land you already own is the alternative that keeps your assets intact.
Plus Deferred Management Fee of 25–35% on exit. Plus ongoing body corporate and service fees. Your capital leaves with you — diminished.
On land you already own. No entry contribution. No exit fee. No deferred management fee. Your property — your asset, forever.
Agent commission, stamp duty, marketing, removals and legal fees — just to move from one home to another. Money that simply disappears.
You move into the granny flat. Your adult children move into the main home — paying a family arrangement or market rent. They get an affordable home. You get income, company and proximity. The family stays together on one block.
Our downsizing granny flat Melbourne designs are purpose-built for retirement — single-level, low-maintenance, energy-efficient and beautifully finished. Every feature considered for a life that's simpler, lighter and more enjoyable.
This is the strategy more Melbourne retirees are discovering. Build once. Move in. Let your main home fund your life. The numbers below are conservative estimates based on current Melbourne rental market data.
Estimates based on Melbourne rental market data. Individual results vary. Always seek independent financial advice. Centrelink and pension implications should be discussed with a financial adviser.
Our flagship 2 bedroom granny flat Melbourne. Vaulted ceilings, open-plan living and a full modern kitchen — a luxury home that doesn't feel like a compromise. The most popular choice for downsizers who refuse to settle.
Sophisticated, premium finishes throughout — because this chapter of life deserves the very best. For those who have worked hard and want their new home to reflect it.
Open-plan living with raked ceilings plus a study that doubles as a guest room. Perfect for downsizers who love to entertain and want family to visit comfortably — without moving back in.
Warm, airy proportions with raked ceilings. Minimal upkeep, maximum comfort. A beautiful home that feels effortless to live in — exactly what this chapter should feel like.
Start with a complimentary consultation — over the phone or in our showroom. We'll discuss your retirement goals, explore our designs and carry out a free desktop site assessment of your property. No obligation, just warm, expert guidance.
Complimentary · 30 mins – 1 hour
We prepare a detailed Proposal covering all build costs and pre-construction fees — giving you a complete financial picture before committing to anything. Transparent, detailed and delivered within 48 hours.
Complimentary · 48 hours
Your Construction Manager coordinates Preliminary Drawings and site classification — soil testing, wind rating and BAL assessment — all submitted to you for approval before anything proceeds.
$7,500 + GST · 3–5 weeks
Under Victoria's 2023 reforms, most secondary dwelling Victoria builds under 60sqm require no planning permit. Where one is needed, we manage everything — council approvals, applications and compliance — so you don't have to.
$4,000–$10,000 + GST if required
Working with our Interior Designer, you'll choose every finish, fitting and accessibility feature — from our Essentials Range or four Premium packages. Your new home, designed to suit exactly how you want to live.
$6,500 + GST · 4–8 weeks
Your HIA New Home Contract is prepared, reviewed and signed. A 5% deposit becomes payable. Clear, fair and straightforward — with no hidden costs or last-minute surprises.
5% Deposit · 2–6 weeks
Your Prestige Living home takes shape across Base, Frame, Lock-Up, Fix and Practical Completion. At Handover, you move into your beautiful new home — and your main house goes to work funding your retirement.
Progressive payments · 12–14 weeks build
Absolutely — and it's one of the most compelling reasons families are choosing this strategy. You move into the new Prestige Living granny flat, your adult children move into the main home, and the whole family ends up on one block with full independence on both sides. They get an affordable Melbourne home. You get proximity, company and the reassurance of family nearby. With the family moves into main house model, the property stays in the family and everyone wins — without anyone having to leave the land you've built together.
You build a Prestige Living granny flat in your own backyard, move into it, and rent out your main house for $25,000–$35,000 per year. No stamp duty, no exit fees, no retirement village DMF. You stay on your land, in your neighbourhood — with a brand-new luxury home and a reliable retirement income.
Significantly. Retirement villages cost $400,000–$700,000 to enter and charge Deferred Management Fees of 25–35% when you leave. A Prestige Living downsizing granny flat builds from $130,000 on land you already own — no entry contribution, no exit fee, no eroded capital. [Source]
No — one of the most compelling advantages of this strategy. You already own the land. No stamp duty. Compare that to buying a new home in Victoria, where stamp duty alone exceeds $40,000 on a $750,000 property. [Source]
Yes. Our accessible granny flat designs are purpose-built for retirement — single-level layouts, step-free entries, wider doorways and lever-style fittings as standard. Our 7 star energy efficient granny flat designs also keep ongoing running costs low on a fixed retirement income.
Renting a Melbourne family home while living in your new granny flat typically generates $550–$750 per week, or $28,600–$39,000 per year in gross rental income. Combined with no stamp duty entry costs, most Prestige Living downsizers recover their build cost within 4–5 years. Seek independent financial advice for your situation.
Call 03 8203 2408 or fill out the form below. Our Sales Team will carry out a free desktop site assessment of your property and walk you through the designs, costs and rental income potential — no obligation, no pressure. Just honest advice to help you plan this chapter well.
As trusted granny flat builders near me and across Melbourne, our Sales Team will carry out a free desktop assessment of your property, discuss your downsizing goals and walk you through exactly what's possible — and how much your main home could earn.
Important: Rental income figures on this page are estimates based on current Melbourne market data and will vary by suburb, property size and condition. The financial strategies described are general in nature and do not constitute financial, tax or legal advice. Centrelink, pension eligibility and tax implications of renting your main home should be discussed with a qualified financial adviser before making any decisions. Prestige Living strongly recommends independent professional advice for your individual circumstances.