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Look up Brazen, on the forum. He will let you know if it can/can not be approved, and what needs to be done.

Not a Granny Flat, but........... We bought a PPOR with a second 3 bed home on the same block, all for little over the price of similar blocks with one home on them. They're both now IP's. Purchase price in 2011-12 $260k, Rental income now $660pw.