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Granny Flat Myths Busted: What NZ Property Owners Need to Know About Minor Dwellings

Modern minor dwelling with timber cladding and private deck.
Granny flats are more than just space for Nan. We bust the top myths and show how smart investors are building income and value.

Granny flats. Minor dwellings. Secondary units. Whatever you call them, these compact homes have long had a place in Kiwi backyards—and their popularity is only growing.

With recent and upcoming legislative changes making it easier to build a minor dwelling in New Zealand, more homeowners and investors are exploring the potential. But myths still persist. At Keith Hay Homes, we’ve helped thousands of Kiwis design and build minor dwellings that work with their land, budget, and life. Here, we bust the most common misconceptions.

Myth 1: “You can only build a granny flat for your elderly parents.”

False. While the term “granny flat” suggests housing for ageing parents, minor dwellings serve a wide range of needs:

  • Teenagers seeking independence
  • Adult children saving for a first home
  • Short-term rental income (e.g. Airbnb)
  • Offices, studios, or additional living space

It’s your land. You get to decide how to use it.

Myth 2: “You need a massive section to build one.”

Not anymore. Thanks to urban intensification and changes to local planning rules, building a minor dwelling is now a real option on many residential sites across New Zealand.

Keith Hay Homes offers a free Desktop Site Analysis to check if your property is suitable. You’ll save time and avoid guesswork.

Myth 3: “Granny flats don’t add value to your property.”

Actually, they do. A self-contained minor dwelling can:

  • Increase your property’s resale value
  • Open up rental income potential
  • Provide flexibility for future family use

In tight housing markets, these advantages can make a big difference.

Myth 4: “They’re all cookie-cutter designs.”

Not with us. Keith Hay Homes offers a range of customisable designs to suit your preferences, section, and lifestyle. Want a larger deck? Need a ramp or a wet-room for accessibility? Looking for vertical cladding or high-performance insulation? We’ve got options.

Our team works with you to tailor each build—without blowing the budget.

Myth 5:“You can build one without telling anyone.”

Please don’t. While new rules make things easier, building and planning compliance still matters. Every site has different requirements. Skipping the process can lead to:

  • Enforcement notices
  • Costly penalties
  • Even forced removal of the structure

Talk to us first—we’ll help you stay compliant and avoid unpleasant surprises.

Thinking of Building a Minor Dwelling?

Whether you’re creating extra income, housing whānau, or future-proofing your property, a minor dwelling is a smart investment move.

Keith Hay Homes will help you:

  • ✔ Understand what’s possible on your site
  • ✔ Navigate consents and council processes
  • ✔ Design and build a minor dwelling that meets your needs

Build smart. Build future-ready. Build with Keith Hay Homes.

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