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Where is it located? Some areas have predominately 4-5 bedrooms and thats considered the norm. Other areas have 3 bedders as the norm. Generally speaking, 5-6 bedders aren't hard to rent out if they are priced at 3 bedders :) But if you price it too high it becomes a psychological barrier that...

Just in case you were wondering, if council does allow and you do proceed, you will not able to build a granny flat as the site would already have two dwellings (i only posted this because you were asking about granny flats in another thread). If this doesn't apply, then just ignore :)