Negative gearing on established properties ends 1 July 2027. New builds remain fully exempt — and your backyard already qualifies. Speak to our team today.
While the rules change around you, your land stays yours. A Prestige Living Granny Flat turns your existing property into a high-yield investment — with no stamp duty, no auction, and no second mortgage.
Granny flat rental income from $350–$600 per week · Granny flat cost Melbourne from $130,000
Melbourne's property market has never been more competitive — or more expensive to enter. But if you already own a home with a generous block, you're sitting on one of the most compelling granny flat investment Melbourne opportunities available. As experienced granny flat builders Melbourne, Prestige Living delivers turnkey granny flat solutions that generate genuine granny flat rental income — without the cost and complexity of buying a second property.
Your land is already paid for. A granny flat simply puts it to work — generating rental income from space that's currently earning you nothing.
Our 2 bedroom granny flat Melbourne designs earn $350–$600 per week, delivering granny flat rental yield Victoria investors consistently rate as one of the best returns per dollar spent. Up to $36,000 in annual gross income — comparable to many traditional investment properties at a fraction of the granny flat cost Melbourne.
Absolutely. Luxury granny flats Melbourne consistently increase host property values, enhance rental appeal and create genuine dual income property Melbourne potential — boosting your overall asset position for the long term.
Real Estate Business — April 2026
The Federal Budget announced on 12 May 2026 fundamentally changes the economics of established property investment. [Source: budget.gov.au] Investors who move to new builds — including granny flats built on land they already own — retain full access to tax concessions. Those who don't face a less favourable position from 1 July 2027.
* This information is general in nature. Always seek independent financial and tax advice before making investment decisions.
Rental losses can only offset property income — not your salary. The old tax advantage of offsetting losses against wages is gone for new purchases.
Investors in new builds keep both negative gearing against all income and the 50% CGT discount. Building new is now the tax-advantaged choice.
Properties held before 7:30pm on 12 May 2026 continue under current rules until sold. Your existing position is secure — and your backyard is an opportunity.
At $350–$600 per week rent, most Prestige Living builds generate positive cash flow — meaning the negative gearing debate may not even apply. The yield speaks for itself.
A Prestige Living turnkey granny flat Melbourne is built on land you already own — which fundamentally changes the investment equation. No stamp duty. No agent fees. No bidding at auction. Just a premium build on your own block generating income from day one.
Estimates based on Melbourne market data. Seek independent financial advice before investing.
The granny flat vs investment property debate ends when you look at the numbers. Before you compete at your next Melbourne auction, consider what a Prestige Living secondary dwelling Victoria delivers on land you already own — compared to the true cost of buying a separate established property.
Our most popular investment build. Vaulted ceilings, open-plan living, two bedrooms and a full bathroom. Premium finishes that command premium rent.
Sophisticated design with premium finishes throughout. For investors who want maximum tenant appeal and the highest rent per square metre.
Two bedrooms plus a separate study. Open-plan living, raked ceilings and a full kitchen — the layout tenants choose first in a competitive rental market.
Architectural raked ceilings and open-plan living at a more accessible build cost. An intelligent entry point for investors maximising return on spend.
Embark on your journey with a complimentary consultation with our Sales Team — over the phone or in our showroom. We'll explore designs, interior packages and carry out a free desktop site assessment to set your investment up for success from day one.
Complimentary · 30 mins – 1 hour
Once we have a clear picture of your investment goals, we'll prepare a detailed Proposal covering construction costs, upgrades and pre-construction fees — so you can model your returns with confidence before committing.
Complimentary · 48 hours
Your dedicated Construction Manager takes over. Preliminary Drawings are created while Geotechnical Engineers carry out soil testing, wind rating and BAL assessment. Everything is submitted for your approval before we move forward.
$7,500 + GST · 3–5 weeks
Where a Planning Permit is required, we manage the entire process. Under Victoria's 2023 reforms, granny flats under 60sqm require no planning permit in most residential zones — significantly reducing time and cost for most investors.
$4,000–$10,000 + GST · 12–24 weeks if required
Working with our Interior Designer, you'll finalise every colour, finish and fitting from our Essentials Range or four Premium packages. We then compile everything for your building contract, including your 7-Star Energy Rating.
$6,500 + GST · 4–8 weeks
Construction Drawings are finalised and a detailed Contract Costing Breakdown is prepared for your review. Your HIA New Home Contract is drafted, clear and ready for signing. A 5% deposit of the contract sum is payable upon signing.
5% Deposit · 2–6 weeks
From Base through Frame, Lock-Up, Fix and Practical Completion — your Prestige Living investment home takes shape with progress payments at each milestone. At Handover, the keys are yours and your rental income begins.
Progressive payments · 12–14 weeks build
Our Sales Team will carry out a free desktop site assessment of your property, discuss your investment goals and walk you through the designs and returns that make sense for your block.
A 2 bedroom granny flat Melbourne typically earns $350–$600 per week, equating to $18,200–$31,200 per year in granny flat rental yield Victoria — making it one of Melbourne's most cost-effective dual income property strategies.
Most investors achieve payback within 4–7 years on a granny flat cost Melbourne of $130,000–$160,000. No stamp duty and no agent fees make the granny flat vs investment property comparison strongly favour building on land you already own.
Yes. Luxury granny flats Melbourne add genuine, measurable value to the host property — improving both its market price and rental appeal. As granny flat builders Melbourne, we design every home to maximise this dual benefit.
A granny flat Airbnb strategy can generate strong short-stay income, particularly in high-demand Melbourne suburbs and on the Mornington Peninsula. We recommend checking your local council's short-stay accommodation rules before proceeding.
Under the 2026 Federal Budget, negative gearing on established properties is quarantined from 1 July 2027. New builds — including small secondary dwelling Victoria constructions — remain fully exempt, retaining negative gearing and the 50% CGT discount. Seek independent tax advice for your situation. [Source: budget.gov.au]
Getting a granny flat quote Melbourne from Prestige Living starts with a free desktop site assessment. Fill out the form below or call 03 8203 2408 to speak directly with our Sales Team. Complimentary, no obligation, 30–60 minutes.
Important: The tax and investment information on this page is general in nature and based on publicly available information regarding the 2026–27 Federal Budget. It does not constitute financial, tax or legal advice. Rental yield estimates are based on Melbourne market data and will vary by location, design and market conditions. Prestige Living strongly recommends you seek independent financial and tax advice from a qualified professional before making any investment decision. Tax laws are subject to change and individual circumstances vary.