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For many homeowners, a granny flat is more than a small cabin out the back. It is a mini home on your block that can house family, bring in rent or give you extra space. The big question is simple. Does a granny flat add value to your home, or is it just an expensive garden project? This guide explains how we work, where we add value and when we may not be worth it. What Is a Granny Flat and How Does It Work? A granny flat is a self-contained secondary dwelling on the same title as your main house. It has its own entry, kitchen, bathroom, living area and at least one bedroom. Think of it as a compact home that shares your backyard, not a shed with a sink. In Australia, people also call them secondary dwellings, ADUs, Fonzie flats or garden studios. Some owners use them for parents, adult children or guests. Others use the space as a rental for extra income or as a future downsizer home.











