dilemma of its kind

Discussion in 'Renovation & Home Improvement' started by arunricky, 17th Feb, 2017.

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  1. arunricky

    arunricky Active Member

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    I have been following these forums for a while but this is my first post.

    I own a property in The Ponds NSW and have good equity. I have recently bought a land in The Gables NSW which is 700+ sqm and 20M frontage. I am planning to build new house and move there, would stay if good school comes up otherwise will buy again in suburb with better schools. Not decided if I am going to keep property at the Ponds or sell it.

    So the advise I need is that I have an option to build an attached granny flat with the main house and I can have a separate entry and complete privacy. I can also have a triple garage and allocate one to the granny flat. Land + house is going to cost around 1.2M and if I decide to add granny flat the add another 50-60K. I can get a good rent if I decide to move on from this property at the gables but an I going to jeopardize the property growth by build an attached granny flat?
     
    Perthguy likes this.
  2. Propertunity

    Propertunity Well-Known Member

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    No you won't affect your property's growth. That's a good price for a granny flat build. I'd do it.
     
    ellejay likes this.
  3. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Get familiar with a local agent - Response RE would be my tip. Speak to Adam. A agent can help steer such choices and advise market changes.

    Take care that adding a GF just prior to sale could result in GST issues (new residential !!) and a arguemnet you are trying to profit . If the GF has a value of $75K or more the issue can be triggered. That could hurt your CGT position too. Its a recent issue on ATO radar. Worth personal tax advice before acting as its better than it sounds but.. if you ignore the issue it worse than it sounds
     
    Last edited: 17th Feb, 2017
    Perthguy likes this.
  4. dabbler

    dabbler Well-Known Member

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    Would I be right in thinking if you bult an attached GF for kids and relos to use or for office space that you wont be claiming & the place is your PPOR, but later you moved out and then rented them out, that it would not be an issue ?

    I have been thinking of doing exactly this myself.
     
  5. arunricky

    arunricky Active Member

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    Correct, I am not going to take any rent when it is my PPOR and then rent out both residences when I decide to move out.
    If the land was in blacktown or around then I would have definitely built a GF but The gables IMO is going to be more like Baulkham hills or Castle hills in the coming years and when the time comes to sell then it will attract investors only rather families that want to have a big house with pool. Although it is going to be completely private but it is still an attached GF
     
  6. arunricky

    arunricky Active Member

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    @dabbler can I ask which address are you looking at building GF?
     
  7. beachgurl

    beachgurl Well-Known Member

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    Why would you think that it would only attract investors? I have a few multigenerational clients who would find that setup ideal. kids have serviceability but no deposit, parents want to scale down in retirement but live in a modern low maintenance property and use their equity as the deposit.
     
    Propertunity likes this.
  8. dabbler

    dabbler Well-Known Member

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    If I built a new home in Sydney, would do it that way as have aging family and also family that visit from interstate & could use as an office.

    Was also looking at Central West, for same reason, visitors can stay overnight etc
     
  9. arunricky

    arunricky Active Member

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    Good to hear that it will not be limited to just investors, I'll start discussing with builder about my requirements.
     

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