Granny flat vs. home extension — what’s best for your family?

Mum and Dad are getting on in life now. Maybe you’re thinking about ways to keep them closer so you can keep an eye on them. Or, maybe they’re perfectly happy staying independent, but keeping the whole family within arm’s reach is still the way you want to go.

We’ll, you’ve got two options: you could build a granny flat out back, or you can extend your existing home.

Extension or a granny flat? What’s the better choice for you, for your beloved older parents — and for your wallet? We’re going to go through the pros and cons of a home extension compared to a granny flat and help you find the answer you’re looking for.

Let’s talk about comfort, quality, safety, the need for extra space and, of course, cost.

Understanding your options

Before making a decision, it’s essential to understand what each option entails. A granny flat is a separate, self-contained unit, while a home extension adds more living space under the roof of your home.

What is a granny flat?

A granny flat is a self-contained dwelling, separate from the house but built on the same property as the main home. A new granny flat typically includes a bedroom, bathroom, kitchen, and living space, providing an ideal solution for housing elderly parents while ensuring they have privacy.

Granny flats are self-contained units, which means they function as a primary home for an occupant while still being close to family support. These spaces can also serve a dual purpose: a private retreat for an ageing parent today and a source of income through rental in the future. Additionally, a granny flat makes it possible to create a multi-generational living arrangement that respects personal boundaries.

What is a home extension?

A home extension involves extending the existing home by adding new rooms or modifying floor space. This could include a second-storey extension or simply adding more bedrooms and common areas to the ground floor.

Unlike a granny flat, an extension adds directly onto the main house, meaning there are no separate kitchen or laundry facilities. This setup makes it easier to keep family members close, especially if additional care is needed. Extensions can also be designed with specific functions in mind, such as a home office, guest wing, or entertainment area.

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Comfort and independence – what suits your loved one best?

You can’t treat your parents like any other tenant — the two of them deserve the best of the best. You’re likely working out how to get some more floor space to do that, so let’s go through it.

Granny flats offer maximum independence

Granny flats provide an independent living arrangement with separate amenities, offering privacy and autonomy. If you’re looking for a solution where your loved one can maintain their daily routine without interference, a granny flat makes a great choice.

Well-designed custom granny flats offer accessible features like ramps, wider doorways, and single-level designs to accommodate future mobility needs. The ability to personalise the layout ensures that it remains a dream granny flat for your loved one, offering both comfort and security.

However, a granny flat cannot provide the same level of immediate care as a connected space, which is something to consider for ageing parents who may require assistance. The balance between privacy and accessibility is crucial when designing a granny flat for your property.

Can you build a two-storey granny flat?

Yes — a two-storey granny flat can be a great solution when land space is limited. However, it’s important to consider accessibility, especially when stairs are involved.

A second storey can offer flexibility for intergenerational living, such as creating a master suite upstairs while keeping the ground floor easily accessible for older family members. If elderly residents need to access the upper level, features like stairlifts or home elevators can be installed — but these will increase the overall building cost.

For some families, mobility concerns make two-storey designs less practical. If maintaining independence and accessibility are key priorities, a custom-designed single-storey granny flat is often a better choice.

Home extensions keep your loved ones nearby

A house extension keeps your loved one closer, making caregiving easier while still offering personal space. An extension adds functionality to your existing home, and an attached granny suite can provide a balance between independence and accessibility.

A home extension would mean they remain connected to daily family life while still having a dedicated space of their own. It also allows for modifications over time; what starts as an independent space may eventually transform into a home office, guest room, or another useful area once it is no longer needed for elderly care.

A second-storey house extension could offer you a happy medium between your two options since it could give your parents a bit more privacy and independence. However, you do need to consider their mobility, especially over the next few years. If that’s an issue, a ground-floor house extension would be the best way to go.

Costs and practical considerations

Price is always the biggest hurdle, isn’t it? We want to do our best for our parents, but sometimes a homeowner needs to consider a cheaper solution. Well, we can tell you that affordability doesn’t mean sacrificing quality or comfort.

How much does it cost to build a granny flat?

The bottom-line building cost of a granny flat project ranges from $100,000 to $300,000, depending on size and features. You’ll need to factor in granny flat building approvals, permits, and construction expenses. Check with your local council about any restrictions before you begin.

If you want a custom design, expert multigeneration extension builders can personalise the layout to meet your loved one’s needs.

How much does a home extension cost?

A home extension may cost anywhere between $100,000 and $600,000+, depending on its complexity. Building an extension onto an existing home can be disruptive and may involve extensive modifications. However, an extension allows for a more integrated living arrangement.

Which option adds more value to your home?

Both options can add to the value of your property, but the benefits depend on your long-term goals.

Granny flats and property value

A granny flat makes a property more attractive to buyers seeking rental properties or additional income opportunities. A granny flat may boost the value of your home, but the future potential of a granny flat varies based on local regulations and demand.

Home extensions and property value

A well-executed home extension can significantly add value to a home by improving floor space and making it more functional for a growing family.

If you plan to house other relatives or use the space as a home office, a granny flat or an extension can provide extra space without compromising the aesthetics of the main house.

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Get in touch today and find out how we can help you design and build the perfect multigenerational home extension.

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Let’s find the best fit for your family

Choosing between a granny flat or a home extension is about balancing cost, comfort, and long-term use. If you’re looking for granny flat solutions, consider the independence it offers. If building a home for elderly care, an extension may be more practical.

At Supa Group, we specialise in granny flats and home extensions that enhance property value while meeting family needs. Come in for a chat, and we’ll walk you through our process, including how our 3D design process lets you adjust and approve every detail.

Get a free consultation with our expert granny flat builders (well, they’re experts in all kinds of builds) today, and let us help you build an extension or a granny flat that’ll keep your loved ones safe, comfortable, and close by.

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