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How to plan your granny flat project.
June 30, 2020
3 tips for getting started on your granny flat.
Thinking about adding more space for your growing family? If you are working from home, or simply need extra space for a growing family, a granny flat is a flexible and affordable option.
Start planning with these 3 top tips:
At Invest Plus Granny Flats, we not only have experienced builders but we can also provide smart financing options to suit your budget needs.
We also have a strong network or real estate agents and property managers who can assist in ensuring you gain the maximum return when renting out your granny flat.
2. Ensure your property meets the requirements such as block size, access and boundary requirements. In some cases you may not need council approval, as a project may meet CDC complying development consent. If not then ensure you obtain the appropriate council approvals.
Invest Plus can assist with all your certification and development consent approvals.
3. Decide on what your primary use will be, this will determine the internal layout, if it's for personal use, or for an elderly relative, do you need to plan in some future alterations such as wider doors, wheelchair access or other contingencies for retirement living. If it will be a home office thinking about natural light and extra living space might be needed.
There is a lot to consider when deciding if a granny flat is right for your property. It is important to ensure you are well prepared. Shop around, get your finance in order and take the time to plan well. Here are our recommendations on the planning process: Do your research. The first step is to research the best and most viable options for your property. Consider council regulations, research rental returns in your area and the cost and finance options for the construction of your granny flat. Loan or financing options? If you need to borrow money to finance your granny flat investment, you can speak to a mortgage broker or talk to Invest Plus Granny Flats to discover cost effective ways to finance your granny flat project. Consider utilising your superannuation and creating a self managed superannuation option. Adding a granny flat to an investment property. While the most common approach is to add a granny flat to your own property, you can also build a granny flat on an investment property. By adding a granny flat to an investment property your property maintenance and management fees could be shared between the two rentals. Be consistent. If you want the granny flat to add value to your property, make sure it matches your existing home and doesn’t look like an afterthought. It’s also essential to ensure that the granny flat doesn’t dominate the garden or take up too much outdoor space. If you’ve got enough space and the right property, a granny flat is a sound investment. Before you dive in, Invest Plus Granny Flat can provide a free online site assessment.
Your granny flat can become a profitable income generator. A granny flat investment can be a positively or negatively geared investment. It really depends on the overall value of your property and the potential rental return you receive. You will be eligible for tax deductions, however it will depend on whether your overall investment is positive or negatively geared. If you rent out a granny flat to generate extra income, remember that you will need to pay tax on the rental income you receive. The amount of tax payable will depend on your income tax bracket and your marginal tax rate. You will also be able to claim the depreciation in value of your granny flat investment as a tax deduction each year. If you are building your granny flat on your primary residence, be aware that this will mean that a portion of your property will be subjected to Capital Gains Tax (CGT). The main priority is to work out if it would be feasible for your overall investment and income portfolio. To work out all the possible costs involved and what the impact of the addition needs to be reviewed and we recommend discussing this with a financial planner and getting the most accurate advice in relation to your circumstances. Ask Invest Plus Granny Flats about payment plan options or our finance partner Sum+ can also assist in financing. It may be beneficial to consolidate your debt with the rest of your investment portfolio.
Book a consultation with our team to discuss your bespoke granny flat design.
