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The cost for that would would be getting up toward $250K. But in Sydney's inner west, that's not necessarily over capitalising. There would flats similar to that in suburbs like Newtown being rented out for traveller accomodation - I bet every available room in Newtown would be rented this week...

Now, this is a good looking granny flat 60sqm. (Mistake in the second para of the description - should read bathroom/laundry.) http://australiandesignreview.com/design_wall/15678-Architecture-Sydney-Studio-Ben-Giles-Architect Scott