Before anything else — before the design, before the build, before the lease — homeowners want to know: what is my backyard actually worth?
It's the right question to ask. Under the Buy My Backyard model, we pay you a one-off lump sum, up front, in exchange for a 99-year lease over an agreed portion of your backyard. We then fund, design, approve, build and manage a granny flat on that portion at our cost. The size of that lump sum is the core of the offer — and it varies significantly from one property to the next.
This article explains what drives the value of a backyard lease offer, and why a lump sum can be a better fit for many homeowners than building and renting out a granny flat themselves.
In plain terms:
No two backyards are the same, so no two offers are the same. These are the main factors we look at:
Land size and usable area. The amount of usable rear land matters more than the total lot size. A large block with a pool, mature trees or a steep slope may have less usable space than a smaller, flat, open lot.
Location. Suburb, proximity to transport, employment hubs, shops and schools all affect demand for a secondary dwelling in that area — and therefore what the leased portion is worth to us.
Council rules and zoning. Each state and council has its own planning controls for secondary dwellings: minimum lot sizes, setbacks, height limits, site coverage and whether a dwelling can be approved as complying development. A property where approval is straightforward is generally worth more than one that faces planning hurdles.
Access. A granny flat needs practical access for construction and for the tenant — typically side access, a rear lane or a second street frontage. Properties with clear, independent access are generally more valuable for this model.
What can be built. Ultimately the offer reflects the dwelling that can realistically go on the site — its size, layout and configuration — once land, rules and access are all taken into account.
Services and site conditions. Connection to water, sewer and power, drainage, easements and soil conditions all affect build complexity and cost, which in turn affects the offer.
Granny flats commonly rent in most Australian metro markets, so some homeowners ask why they wouldn't just build one and rent it out themselves. That's a legitimate option — but it comes with a very different set of obligations:
| Build and Rent Yourself | Lease the Land to Buy My Backyard | |
|---|---|---|
| Build cost | You fund it (savings or borrowing) | $0 — we fund it |
| Council approvals | You manage and pay for them | We handle them at our cost |
| Money to you | Rent over time, after costs | One lump sum, paid up front |
| Finding tenants | Your responsibility | Ours |
| Vacancy risk | Yours | Ours |
| Maintenance and repairs | Yours | Ours |
| Landlord obligations | Yours under state tenancy law | None — we're responsible |
For many homeowners, cash now — to pay down the mortgage, renovate, retire earlier, help the kids or invest — is worth more than the prospect of rent over many years, with the build cost, debt and landlord responsibilities that come with it.
The lump sum is paid once and is yours outright. Homeowners commonly consider:
How you use it is entirely up to you, though we strongly recommend speaking with a financial adviser first.
A lump-sum payment for granting a long-term lease may have tax implications, potentially including capital gains tax considerations. The treatment depends on your circumstances and how the arrangement is structured. Speak with a registered tax agent or accountant before proceeding, and review the Australian Taxation Office's guidance with them.
We don't quote a standard figure, because the value genuinely depends on your property. The only way to know what your backyard is worth under this model is a proper assessment that considers your suburb, lot configuration, access, dwelling potential and local council rules.
Buy My Backyard's free property assessment covers all of this. Submit your details and we'll come back to you within 48 hours with a clear answer on whether your property qualifies. If it does, we'll tell you what we'll pay for the lease — with no obligation.
This article provides general information only and does not constitute legal, tax or financial advice. Any offer depends on the individual property and assessment. Seek independent legal and financial advice before entering a long-term lease.
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