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Cost-Effective Tips for Building a Granny Flat in New Zealand

 

Wellington Builders | Renovations | Construction | Design & Architecture Services | Environmentally Conscious | Wellington Roofing & Waterproofing | Wellington Painters

 

Granny flat lounge

Building a granny flat is an excellent way to maximize space, add value to your property, and provide a cozy spot for family or guests. But let’s face it—construction costs can add up quickly. If you’re looking to build a granny flat without breaking the bank, here are some smart tips to keep your budget in check.


1. Plan Smartly

The saying “fail to plan, plan to fail” couldn’t be more true when it comes to building a granny flat. Before you even think about picking up a hammer, make sure you’ve got a solid plan. Work with an architect or designer who understands your budget and can help you create a cost-effective design. Simple, functional layouts are your friend here—fewer corners and fancy features will save you heaps.


2. Consider Prefabrication

Prefabricated or modular granny flats are becoming increasingly popular in New Zealand. These units are built off-site and then delivered to your property, which can significantly reduce construction time and costs. Plus, prefab homes are often more energy-efficient, saving you money on utilities in the long run.


Orkney Group’s sister company, Green Abode, is in the process of re-designing a range of cost-efficient, high-performing, energy-efficient transportable homes that will be able to be delivered to anywhere in the North Island. We expect to have the designs completed before the end of this year, so stay tuned!


3. Stick to the Essentials

It’s easy to get carried away with all the bells and whistles, but sticking to the essentials is key to keeping costs down. Think about what your granny flat needs—a bedroom, a bathroom, a kitchenette, and a living space. Extras like high-end finishes, fancy lighting, or elaborate landscaping can always be added later when your budget allows.


4. DIY Where You Can

If you’re handy with a paintbrush or know your way around a toolbox, consider doing some of the work yourself. Painting, landscaping, and even some basic carpentry are tasks that can be DIYed with a little know-how and effort. Just make sure to leave the more technical jobs—like electrical and plumbing work—to the professionals.


5. Shop Around for Materials

Don’t settle for the first quote you get on materials. Shop around, compare prices, and look for deals. You’d be surprised how much you can save by being a savvy shopper. Also, consider using recycled or second-hand materials. Not only is this good for the environment, but it can also be a great way to add character to your granny flat without blowing your budget.


6. Think About Energy Efficiency

Energy-efficient features might have a higher upfront cost, but they’ll save you money in the long run. Consider installing insulation, double-glazed windows, and energy-efficient appliances. Solar panels are another great option if your budget allows, as they can significantly reduce your energy bills over time. 

The orientation of your granny flat is also an important aspect to consider, to ensure you capture the best light throughout the day to help reduce your energy bills. Installing large windows, skylights or glass doors also contributes by bringing in as much light as possible.


7. Keep It Small

One of the biggest ways to keep costs down is by keeping your granny flat small and simple. Remember, this is a granny flat, not a full-sized house. Focus on making the space comfortable and functional without adding unnecessary square footage.


8. Don’t Forget the Legalities

Before you start building, make sure you’re aware of the legal requirements in your area. Building codes, permits, and council regulations can vary depending on where you are in New Zealand. Getting the paperwork sorted early on can save you from costly fines or having to make changes later on.


A building consent is almost always required when constructing a granny flat, as it ensures that the building meets the necessary standards for safety, health, and durability under the Building Act 2004. Building consent is needed for:

  • Any new building work, including the construction of a granny flat.

  • Alterations or additions to an existing building.

  • Installing plumbing and drainage systems.


Having said this, the New Zealand Government is considering doing away with building consents for granny flats to make them more accessible. Read more about it here and the changes they hope to make by mid-2025.


A resource consent may be required depending on your local council’s planning rules, which are influenced by the Resource Management Act 1991 (RMA). Factors that might necessitate resource consent include:


  • Zoning: If your property is in a zone that has restrictions on additional dwellings, such as residential zones with specific density limits.

  • Size and Height: If your granny flat exceeds certain size or height limits set by your local council.

  • Site Coverage: If building the granny flat increases the total site coverage beyond what is permitted in your area.

  • Proximity to Boundaries: If the flat is too close to property boundaries, it may breach setback requirements.

  • Environmental Impact: If the granny flat could impact the environment, such as by increasing stormwater runoff or affecting native vegetation.


We suggest checking with your local council to understand the specific requirements for your area. They can guide whether you need building consent, resource consent, or both, and help you navigate the application process. Some councils also offer pre-application meetings to discuss your project and ensure you meet all necessary regulations.


Final Thoughts About Building a Granny Flat

Building a granny flat doesn’t have to be a budget-busting experience. With a little planning, creativity, and smart decision-making, you can create a beautiful, functional space that adds value to your property without draining your bank account. Whether you’re building for a loved one or just looking to increase your home’s versatility, these cost-effective tips will help you get the most bang for your buck. 


If you want to ensure the process is smooth and stress-free, Orkney Group is here to help. Our team of experienced architects, builders, painters, and roofers can guide you through every step of the project, from design to putting on the final coat of paint. Whether you need a full build or just a bit of expert advice, we're committed to delivering quality workmanship that fits your budget and vision. Contact us today to discuss how we can make your granny flat project a success!


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