In high-demand rental areas like Shortland, adding a secondary dwelling to your property isn’t just practical—it’s profitable. This recently completed two-bedroom granny flat was built for investment purposes and now generates an estimated $27,000 in annual rental income, based on a current median rent of $525 per week (source: domain.com.au, June 2025).
The Design: The Dock – Modified for Market Appeal
The base design is The Dock, one of Acrow’s most popular two-bedroom granny flat layouts. It’s efficient, attractive, and versatile—perfect for rental use. For this project, a few key upgrades were made to enhance appeal and functionality:
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Raked ceiling with square-set cornice to the living, kitchen and dining areas
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Island bench in place of the standard L-shaped kitchen for improved flow
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Sliding door off the dining area, adding natural light and outdoor connection
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Niche to shower, dishwasher provision, and an upgraded toilet
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Attached configuration to suit block layout and maximise yard space
The rest of the finishes were kept to Acrow’s standard inclusions—ensuring the project stayed on budget while still delivering a high-quality, low-maintenance home.
Built Fast Under CDC with Steel Frame Construction
Approved via Complying Development Certificate (CDC), this project moved quickly through approvals and construction. The build commenced on 22 January 2025 and reached Practical Completion by 17 April 2025—just 12 weeks on-site.
The structure was built on a slab-on-ground (SOG) using a steel frame and truss system, making it ideal for long-term durability and investor peace of mind.
Compliant with BAL 12.5 Bushfire Regulations
The dwelling meets BAL 12.5 requirements with features that include:
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Fire-resistant entry door
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Aluminium flyscreens
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Eave vents for ember protection
These additions provide protection for tenants and ensure long-term compliance in bushfire-prone regions.
Rental Returns: $525 Per Week in Passive Income
With Newcastle’s ongoing rental demand and land values rising, granny flats like this are a smart move for owners looking to boost yield.
In Shortland, two-bedroom homes are currently leasing for a median of $525 per week, equating to an estimated $27,300 per year in rental income.
That kind of return makes building a granny flat a compelling strategy for:
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Generating passive income
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Increasing the value of your property
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Leveraging underutilised land
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Future-proofing your investment
Minimal Extras, Strong ROI
By sticking to standard inclusions where possible, and choosing value-focused upgrades, this investor was able to build an attractive rental property without overspending. It’s a strong example of how Acrow helps clients build for return—not just resale.
Granny Flat Investment Newcastle Project Gallery
Want to Add $27K a Year to Your Investment Property?
A two-bedroom granny flat can generate serious rental income in the right area—and Acrow can help you get there. From concept and approval to construction and handover, we handle the details so you can focus on the return.
Book a free site inspection today to find out what’s possible on your block—anywhere in NSW or the ACT.
Find out what’s possible on your block. We build investment-ready granny flats across NSW and the ACT.