The conversion of a detached garage into a granny flat presents an opportunity to generate rental income, contributing to the property's value and serving as a long-term investment in the growing rental market. This additional rental income stream not only adds to the property's overall revenue but also enhances its investment potential.. To convert a double garage into a 2-bedroom granny flat, minor structural changes may be necessary, such as adding walls, resurfacing the floor, installing additional windows, and applying a plaster finish. Factors to consider include garage door replacement, light sources, floor design, and space usage.

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How much does it cost to convert a garage into a granny flat? In Australia, garage conversions can cost anywhere between $6,000 to $20,000 with an average of around $12,000. Depending on the type of room you plan to convert it to, the price may vary. Living Room conversion cost: $5,000 - $10,000.. In NSW, if you are transforming the garage into a granny flat, it will need Building Sustainability Index (BASIX) certification for energy efficiency. In other states and territories, the Nationwide House Energy Rating Scheme (NatHERS) certificate applies to residential dwellings. For heating and cooling, consider a reverse-cycle air conditioner.