With higher interest rates impacting investors, many buyers are looking at creative ways to boost their rental income.
One popular strategy is building an extra dwelling – like a granny flat – on the property.
While it’s not possible in all situations, there are benefits to having a second residence on the property.
This episode explores some advantages and disadvantages of building a granny flat on your investment property.
What you’ll learn:
- (0:39) General Advice Disclaimer and Introduction to Granny Flats
- (1:52) What is a Granny Flat?
- (2:44) Features and Zoning Requirements of Granny Flats
- (3:54) Advantages of Building a Granny Flat: Cash Flow and Yield
- (4:52) Tax Benefits and Capital Gains Tax Implications
- (5:49) CGT Exemptions for Granny Flat Arrangements
- (7:03) Written Agreements for Granny Flats to Protect Legal and Financial Interests
- (7:37) Conditions for CGT Exemption and Modifying Agreements
- (8:20) Additional Advantage: Equity Growth
- Load More…
Links and Resources:
CPA Australia for professional accounting advice
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