Investing in granny flats is a great idea that shouldn’t be procrastinated. It’s true that some people see granny flats as the domain of the elderly relatives as well as the teenagers. Nevertheless, granny flats Brisbane has today could also be among the successful investment properties people own. You should stop seeing a granny flat as just something you need to give your home more space. You could also generate rental income from these flats and use it to improve the living standard of your family. See the important things that should capture your attention when investing in a granny flat: See more at: Granny Flats Brisbane
Building or buying
You need to know the method you should use to own a granny flat. Some people prefer building granny flats while others opt to buy complete granny flats Brisbane has to offer. If you opt to buy a granny flat, you should ensure it’s a low-maintenance property, affordable and in a desirable location. If you wish to build granny flats, you need to know if you will build self-contained or secondary dwellings. Self-contained granny flats for rental purposes should have well-designed living space, laundry, bedroom, kitchen, and bathroom.
Before you decide to go the ‘buying’ or ‘building’ way, it’s good to first calculate the entire cost of each. Of course, the type of the Brisbane granny flats you want to build would determine the amount of money you would spend on construction. The size of the flat, material source and design type would have an impact on the construction budget you would make. Architecture fees and engineering costs would also influence the building cost even if you want the granny flats to be part of the planned extension or renovation.
For any rental granny flat you have, you would be expected to pay tax if you are generating some extra income from it. Your marginal tax rate and income tax bracket would greatly influence the amount of tax you would pay for your rental granny flats in Brisbane. How positively or negatively your granny flat investment is geared would indicate the tax deductions you are eligible to claim. A property is said to be negatively geared if its rental income cannot meet its maintenance costs such as payment of loan interest among other expenses. Nevertheless, people who own positively geared properties would have the ongoing maintenance expenses as the only tax deductions they can claim.
Value impact of the flat to your property
Although the primary purpose of building or buying granny flats would be to get additional income, the value they add to the existing property is also important. In most cases, granny flats increase the value of the existing property if they have observed the local council regulations. Most people prefer buying granny flats Brisbane has today with extra independent living space since it is what most tenants and flat buyers find admirable.
The practical part of everything is important. Building or buying a good granny flat would be a sound investment if these four aspects above are not dismissed. On the other side, it’s also good to find out the risks that sometimes associate with granny flats. Owning some of the best granny flats Brisbane has today would be a lucrative business opportunity you never thought about.