Three Configurations, Same 60 sqm Box — Different Returns

Studio (35-40 sqm), 1-bed (40-50 sqm), 2-bed (55-60 sqm). Same SEPP rules, same approval pathway, same construction process. Wildly different end products and wildly different returns.

Buildana (Lic. 487805C) has built all three across Fairfield, Liverpool, Cumberland and Canterbury-Bankstown. The number we recommend in roughly 80% of consultations is 2-bed. Here is why.

Studio — Cheapest to Build, Hardest to Rent

All-in cost: $115,000-$155,000 (35-40 sqm internal). Per Rawlinsons 2026 Sydney rates adjusted for the small-build premium, a 38 sqm studio at medium-spec brick veneer is roughly $2,400-$2,500/sqm — meaning $91k-$95k construction before site costs.

Rent (Western Sydney 2026): $270-$340/week. Yield on build cost: 9-15%.

Use case: elderly parent who only needs sleeping + bathroom + kitchenette. Home office or studio room. Tight budget where 2-bed simply doesn't fit. Very small backyards where the footprint has to be minimal.

What you lose: rental appeal. Studios on the rental market in Western Sydney sit longer than 2-beds. The pool of tenants who want a studio + are willing to pay $300/week is small. Vacancy risk is real.

1-Bed — The Compromise Few People Pick

All-in cost: $130,000-$175,000. Roughly $15k more than a studio for the addition of a separate bedroom.

Rent: $300-$400/week. Yield 9-16%.

Use case: couples, adult children, modest budgets. Honest answer: this is the configuration we build least often. The cost gap to a 2-bed is only $25k-$35k more, and the rent gap is $80-$110/week. The 2-bed almost always wins on the maths.

The only time we recommend a 1-bed over a 2-bed is when the block physically cannot fit 60 sqm + setbacks + private open space — and even then we usually try to squeeze the 2-bed first.

2-Bed — Why We Build This 80% of the Time

All-in cost: $155,000-$210,000 (55-60 sqm internal).

Rent (Western Sydney 2026): • Fairfield: $400-$480/week • Liverpool: $420-$500/week • Canterbury-Bankstown: $400-$490/week • Cumberland: $390-$470/week • Blacktown: $380-$460/week

Yield on build cost: 11-17%.

Incremental analysis vs studio: extra spend $40k-$55k, extra annual rent $5,720-$8,320. ROI on the incremental investment 10-19% per year. The 2-bed pays back the size upgrade in 5-7 years, then runs on indefinitely.

Resale and refinance: 2-bed granny flats add $80k-$160k to property value at refinance (40-85% of build cost reflected). Studios add roughly half that because the rental cash flow is so much weaker.

Decision Matrix — Yield, Use Case, Block Size

Block ≥ 600 sqm + budget allows: 2-bed every time. Block 450-550 sqm + tight setbacks: 2-bed if the layout fits, 1-bed if it doesn't. Elderly parent who needs proximity to main house: attached 2-bed works (you still get the rent later). Budget capped under $135k: studio is the only viable option. Home office only: studio. Don't waste 60 sqm on a workspace.

Contact Buildana for a free site assessment. We will tell you what fits and what the rental return is likely to look like.

If granny flat lands as the right call for your site, jump straight to the layouts at /homes/granny-flats/designs — 47 plans across 1, 2 and 3-bedroom configurations.