what are benefits of granny flat subdivided as apposed to an addition adjoining my home

thinking of if i can build on to rent out something

what are benefits of granny flat subdivided,
as apposed to an addition adjoining my home

possibly for me to live in and then rent out the rest of my home or visa versa live in my house and rent out the additin

subdivision is a huge process and alot of work i beleive though if going through granny flat company they often do it for you

subdivision has so many requirements for how much land car space garden set backs each property must have and is very limited in what they would allow the process might be so much harder

if i made a big family room type of additon with bedroom bathroom and laundry/kitchen i see that as easier to do as a type of granny flat

i co uld maybe even do an upstairs over that without disrupting our ability to live there as its all over a separate new additom. it would all have less requirements and headaches than the many requirements in my areas re a granny flat.


i;'d be allowed to knocl my house down and builld 2 semidetached double storeys as is done in many suburbs these days and they are each enormous like real huses
i see that as a much bigger expense though i could sell one for alot as i have seen done in my area, but i'm not thinking of selling i'm thinking of just having areas for me to live in and areas to rent

 

For me , I'd want to do a rough feasibility to see which option yeilds the best monetary results. I would never in my wildest dreams put a GF on a duplex site if the feasibility for the duplex option is giving me a 25-30% return on TDC etc. You'd be killing the value of the land.

 

Personally - if I had a block that could be subdivided I wouldn't be building a GF. I'd be going the two houses route.

Cheers

Jamie

 

Yes as others have mentioned, there are other options you should explore first.

 

In NSW you cannot subdivide off the granny flat. It stays on the same title as the house.

 

Yes, this is true for NSW, no subdivision of GF.
If you are looking for additional rental income for least capital outlay then a "cheap" granny flat done under complying development is the way to go. Also, depending on the council, the infrastructure contributions may not have to be paid when doing a GF (technically a Secondary Dwelling in council speak).

 

. Also, depending on the council, the infrastructure contributions may not have to be paid when doing a GF (technically a Secondary Dwelling in council speak).

can you explain that please anthony or mention other choices you might tell me to look at please.

 

PM sent as well but basically many Sydney councils charge this fee but some regional councils do not.

 

Subdivision and sale is likely to trigger a range of tax issues like full income tax and GST ..no CGT. Adding a GF to a resi wont trigger GST and may (??) enhance value for a occupier seeking dual living or dual investor income - Sale could even be an exempt gain.

 

We recently completed a project where the land was subdivided (it was originally 900 sq m) and we built the two duplexes (torrens, not strata titled) and built two granny flats - one behind each duplex.

Pretty unique situation admittedly because the land was big enough to do this - it's divided into 2x 450 sq m lots (12 m wide each as well) which is the minimum required for a detached granny flat under the state (NSW) legislation.

The rental returns are at around $2,200 /week all told.

Alternatively you could attach the granny flats to the houses. If the land is less than 450 sq m each and less than 12 m wide each, the NSW SEPP allows for this.

 

Excellent outcome!