Tiny Homes vs. Granny Flats: Which is Right for You?
Purpose and versatility
- Tiny Homes:
Tiny homes are perfect for minimalist living, being transportable and short stays. They offer a unique, compact lifestyle choice, and are best for individuals or couples who value simplicity over space. - Granny Flats:
Granny flats, on the other hand, are designed for versatility. Whether it’s for family, guests, or rental income, a granny flat can serve as a fully functional, independent living space that adds real value to your property and long-term flexibility.
Space and Comfort
- Tiny Homes:
Typically around 10 to 40 square meters, tiny homes use clever design solutions to maximize space. However, they can feel limiting for those wanting separate rooms or ample storage, and are often best suited for short-term or minimalist living. - Granny Flats:
Granny flats offer more room all the way up to 100sqm +. This extra space allows for dedicated living, kitchen, and sleeping areas, making granny flats feel much closer to a true home. Ideal for those seeking comfortable, long-term accommodation that offers all the comforts of a regular house.
Amenities and Lifestyle
- Tiny Homes:
A tiny home provides basic living and being transportable is a great benefit if that's what you need. While great for simplified living, tiny homes may not offer the comfort or conveniences that a typical lifestyle demands. - Granny Flats:
Granny flats are fully equipped for modern living, often including a spacious kitchen, comfortable bathroom, and even room for guests. This makes granny flats a more practical choice for multi-generational living, renting out, or creating a cozy, independent space that doesn’t compromise on comfort.
Property Value and Investment
- Tiny Homes:
Tiny homes value is limited to itself, as the years go on it loses value as it ages much like most vehicles. While they’re great for lifestyle flexibility, they may not provide significant long-term financial returns. - Granny Flats:
Granny flats, however, offer excellent return on investment. As a permanent addition to your property, and increase capital gain. Plus, the potential for rental income makes granny flats a financially sound, long-term choice.
Insurance and approval
- Tiny Homes:
Tiny homes are classified as caravans, which means they aren’t subject to the same standards as traditional buildings and aren’t required to meet the Building Code of Australia (BCA). Because they are mobile, they must adhere to specific size and weight restrictions in each state, and insurance is typically provided under caravan policies. Tiny homes are great for flexibility but may not meet all local or state regulations as a permanent residence. - Granny Flats:
At Humpy, all our granny flats are built to meet both the BCA and local council requirements, making them fully compliant, legal structures ideal for renting or as permanent residences. Insurance for a granny flat is similar to that for a traditional home, and they can be either attached or detached dwellings, providing a stable, long-term housing solution that fits seamlessly into your property.