Your Backyard Might Be a Goldmine. Here's Why
What if the government quietly changed the rules and made your property worth significantly more?
It’s happening right now across Victoria. While everyone is watching interest rates, the real story is in a set of new planning regulations that are completely changing what you can do with your land.
For some homeowners, this is a golden ticket. For others, it’s a minefield of hidden traps. The big question is: which one are you?
The New Rulebook: Build More, Wait Less
The Victorian Government wants more homes built, and they’re cutting the red tape to make it happen. Two huge changes matter for you.
1. Granny Flats Are Now Simple 🏡
This is the big one. You can now build a second small home—up to 60 square metres—in your backyard without a planning permit.
Think about that. A home office, a rental unit for extra income, or a place for your parents or kids just became massively easier, cheaper, and faster to build.
2. Renovations Get a Fast Pass 🚀
Tired of waiting months for council approval? For many homes on blocks over 300 square metres, that wait is over.
There’s a new “deemed to comply” system. Think of it like a pre-approved checklist. If your extension plans meet the standard rules for height and how far it is from the fence, you get an automatic green light. No long, uncertain waits.
So, Who Are the Big Winners?
These changes create a new class of property winners. You’re in a great position if you own:
A Home on a Big Block: That classic suburban backyard in Melbourne’s east or south-east is no longer just for cricket. It’s now a potential income source.
A Property Near a Train Station: The government is pushing for more homes near transport and shops. If you live in one of these zones, your land’s development potential just skyrocketed.
A House Ready for a Makeover: If you’ve been dreaming of adding a second story, you can now move forward with far more speed and certainty.
HOLD ON! “Permit-Free” Is Not “Rule-Free”
Before you hire a builder, you must understand the traps hiding in the fine print.
Trap 1: You Still Need a Building Permit.
While you can skip the planning permit, you absolutely still need a building permit. This is non-negotiable and ensures your new granny flat is safe, secure, and built to code.
While you can skip the planning permit, you absolutely still need a building permit. This is non-negotiable and ensures your new granny flat is safe, secure, and built to code.
Trap 2: The Ghost on Your Property Title.
This is the deal-breaker many people miss. A restrictive covenant is an old rule on your property’s title, sometimes from decades ago, that can forbid you from building a second dwelling. This old rule can override the new government policy. You’ll only find it by having your Section 32 and Title documents professionally reviewed.
This is the deal-breaker many people miss. A restrictive covenant is an old rule on your property’s title, sometimes from decades ago, that can forbid you from building a second dwelling. This old rule can override the new government policy. You’ll only find it by having your Section 32 and Title documents professionally reviewed.
Trap 3: Zoning is Still King.
Your property’s specific zone (its “neighbourhood category”) still sets the master rules. A detail in your zoning can limit what you build, no matter what the new state-wide changes say.
our 3-Step Action Plan
Don’t guess—get informed.
- Check Your Zone. Use the free online VicPlan map. Type in your address and see what zone and overlays apply to your home.
- Read Your Title. Find your Section 32 and Certificate of Title. Look for any mention of a “restrictive covenant” or “easement.”
- Get Expert Advice Before You Buy. If you’re looking to purchase, a planning review is essential. It’s the only way to know if you’re buying a goldmine or a dead end.
These new rules are a fantastic opportunity to add serious value to your property. But making the wrong assumption can lead to a costly mistake.
At Prime Legal Conveyancing, we dig into the details of the Section 32 and planning certificates for our clients. We uncover the potential and the pitfalls, so you can make your next move with confidence.
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