Affordable Tiny House Construction in Victoria:

Building Your Dream Home Without Breaking the Bank

Building a small secondary home or a tiny house in Victoria is now more achievable and affordable than ever, thanks to recent changes introduced by the Victorian Building Authority (VBA) in November 2023. With the easing of regulations, including the removal of the requirement for a town planning permit, homeowners can now embark on the journey of constructing a sustainable, compact home with significantly fewer hurdles. But beyond regulatory ease, there are many ways to keep costs down without compromising on quality or sustainability.

One of the most effective ways to reduce construction costs is by using alternative building materials like strawbale and cob. These materials are not only affordable and readily available, but they also offer excellent insulation and durability, making them ideal for tiny homes. Strawbale construction provides superb thermal performance, keeping your home warm in winter and cool in summer, while cob, made from sand, clay, and straw, offers natural thermal mass and long-lasting strength. Both materials are environmentally friendly, contributing to a lower carbon footprint for your build.

In addition to using alternative materials, incorporating recycled elements such as doors, windows, bricks, timbers and fixtures can further reduce costs. Platforms like Facebook Marketplace are treasure troves for finding these items, often for free or at a fraction of the cost of new materials. By opting for recycled materials, you not only save money but also contribute to the circular economy, reducing waste and promoting sustainable living. There is an understandable stigma about this method, but it is a common practice now.

Revival Project's Zero Footprint Repurposing Hub has won the 2022 Melbourne Design Week Award for the top event. This hub serves as a specialised area for repurposing waste generated from construction and demolition activities. 

Moreover, Terra Build with the Earth specialises in designing homes using these sustainable materials, ensuring that your tiny house is not only budget-friendly but also beautifully crafted and environmentally conscious. Laura Marini and her staff is educated in Victorian home design standards including ESD (Environmentally Sustainable Design) principles, and the National Construction Code. The recent changes in regulations also mean that building a tiny house in Victoria is less expensive in terms of time and bureaucracy.

With no need for a town planning permit and simplified building codes, you can focus on creating a home that meets your needs without unnecessary delays or added costs. Even though certain restrictions still apply—such as size limits, setbacks, and utility connections—the overall process has been streamlined, making it easier and more affordable to build a small secondary home. By embracing alternative building materials, leveraging recycled resources, and taking advantage of the eased regulations, constructing a tiny house or secondary home in Victoria doesn’t have to be expensive. Whether you’re looking to downsize, create a sustainable rental property, or simply enjoy the benefits of compact living, the pathway to affordable homeownership has never been clearer.

 

Cost of building a Small Secondary Home (Granny Flat)

 

• • Prefabricated or Modular Homes: Prefabricated or modular small secondary homes typically cost between AUD $50,000 and $150,000, depending on the size and level of customisation. These homes are built off-site and then delivered and installed on your property, which can reduce construction time and labour costs.

• • Custom-Built Secondary Homes: Custom-built small secondary homes, often referred to as granny flats, can range from AUD $120,000 to $250,000 or more, depending on size, design complexity, and material choices. These costs include foundations, utilities, and permits.

• • DIY Builds: If you have the skills and time to build a secondary home yourself, the costs can be significantly lower, potentially ranging from AUD $30,000 to $100,000, depending on the materials used and the level of finish desired. Building with the super energy-efficient strawbale can be labour-intensive but this too can be prefabricated now from a factory (see photo) to be nailed on the site instantly. Terra Build with the Earth can deal with that. We are looking at this range for a tiny house or a granny flat designed by us. Not to mention the energy cost savings in the future.

 

Suitable suburbs to construct Granny Flats or Tiny Houses in Victoria

When considering the construction of a granny flat or small secondary home in Victoria, choosing the right location is key to maximising value and convenience. Several outer suburbs around Melbourne are particularly well-suited for building granny flats due to factors such as land availability, property values, zoning regulations, and proximity to amenities. Here are some of the best outer suburbs in Victoria for constructing granny flats:

 

Werribee

Werribee is known for its affordable property prices and larger block sizes, making it ideal for adding a granny flat. The area has seen significant growth, with good access to schools, shopping centres, and public transport.

 

Cranbourne

Cranbourne offers a mix of established homes and new developments, often with ample space for secondary dwellings. The suburb has strong infrastructure, including schools, parks, and transport links, which enhances the appeal of granny flats for potential tenants or family use.

 

Melton

Melton is an affordable and growing area with many properties featuring large backyards. The suburb has seen substantial development, including new schools, shopping centres, and transport options, making it a practical choice for building a granny flat.

 

Sunbury

Sunbury is popular for its semi-rural feel and larger property sizes. It is well-connected to Melbourne via road and rail, making it an attractive location for a secondary dwelling.

Pakenham is a fast-growing suburb with plenty of space for granny flats. The area offers a good mix of established homes and new estates, with access to schools, parks, and shopping facilities.

 

Lilydale

Lilydale’s scenic surroundings and larger blocks make it a desirable location for a granny flat. The area offers good transport links to Melbourne and access to the natural beauty of the Yarra Valley.

 

Carrum Downs

Carrum Downs is known for its family-friendly environment and larger lot sizes. The suburb offers good amenities and easy access to both the city and the Mornington Peninsula, making it an excellent choice for a secondary
dwelling.

 

Officer

Officer is a rapidly developing suburb with many new estates offering larger block sizes, ideal for adding a granny flat. The suburb is well serviced by public transport and close to schools and shopping centres.

 

Hoppers Crossing

Hoppers Crossing is a well-established suburb with a mix of older homes on larger blocks. The area’s growth in infrastructure and amenities makes it an attractive location for a granny flat.

 

Frankston

Frankston offers a coastal lifestyle with relatively affordable
property prices. Larger blocks and a relaxed, beachside vibe make it a great spot for building a granny flat.

 

Dandenong

Dandenong is a diverse suburb with plenty of older properties on larger blocks. The area is well-serviced by public transport and has strong community infrastructure, making it a viable location for a secondary dwelling.

 

Point Cook

Point Cook is a modern, family-oriented suburb with many properties featuring generous land sizes. The suburb has seen significant development, with good schools, parks, and shopping options, making it a suitable choice for adding a granny flat.

 

Rowville

Rowville is known for its spacious properties and green spaces. It’s a well-established suburb with excellent amenities and easy access to both the city and the Dandenong Ranges.

 

Eltham

Eltham is known for its natural beauty, featuring plenty of green spaces and a relaxed, semi-rural atmosphere. The suburb is home to larger properties that provide ample space for constructing a granny flat. Eltham is also well-connected to Melbourne via public transport and offers excellent local amenities, making it a desirable location for a secondary dwelling.

 

Kinglake

Kinglake offers a serene, rural lifestyle with expansive properties and stunning natural surroundings. The large land sizes typical of this area make it ideal for building a granny flat. While Kinglake is more remote than some other
suburbs, it provides a peaceful retreat with access to beautiful national parks and outdoor activities, appealing to those seeking a tranquil setting.