19/05/2026
Cheap prefab granny flats look like a great deal, until you find out you can't legally rent them out. 🚨
If you've been eyeing those $30k–$40k imported granny flats as a passive income play, here's what you need to know before you spend a cent.
These structures often can't get an occupancy permit because they don't meet minimum property standards. That means they're classified as a caravan not a dwelling. And in Victoria, you cannot rent them to strangers as a source of passive income. Full stop.
What you can do, rent them to friends or family for up to two years, as long as they're connected to sewer and electricity.
If passive rental income is the goal, you need a legitimate granny flat with a proper occupancy permit. It costs more upfront, but it's the only version that actually works as an investment.
The cheapest option isn't always the smartest one. 💡
Save this before you make a decision you can't undo. And if you want to talk through what actually makes sense for your property, free session in the bio.