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Regarding distance from main dwelling to secondary dwelling (granny flat), the Building Code is quite clear- it's 1.8m. If, though, you can provide a fire-rated wall to any walls breaching this zone, you can get as close as you want. Regarding additional floor space making the granny flat...

I can probably chime in here since Ive done over 100 of these as designer/approval guy. 1. Flat-Pack vs Builder to provide materials- there's really not much difference on price here. It is slightly faster when you buy from a kit-home company but overall the price doesn't vary much at all...

VERY glad the building process went fairly smoothly, Ken. The granny flat looks really smart.