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A clever trick you didn’t know could triple your rents

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Your Investment Property | 18 Dec 2012, 12:00 AM Agree 0
The cash making concept illustrated here is nothing new, but making it work is something few understand. Your Investment Property reveals how it’s done
  • peter mclean | 20 Dec 2012, 09:01 PM Agree 0
    it's a great idea, having a granny flat. however if you live in Queensland, we aren't as yet allowed to have them. the only thing you can have is additional accommodation for family members. it would be great if you guys could lobby the QLD government to allow us the same as NSW.
  • cj oakes | 20 Dec 2012, 10:33 PM Agree 0
    We call them garage apartments here in America...they've been around since the 50's. PS - I love a nice Spumante.
  • Tax Worries | 21 Dec 2012, 09:47 AM Agree 0
    You don't mention the CGT impact of altering the (normally exempt) family residential property. Any comment?
  • Peter | 12 Apr 2013, 09:15 AM Agree 0
    You do not mention the insurance requirements.
    Also do not mention Land Tax , as part of the proprty is income producing, so part of property would be included in land tax calculations , and if are over the land tax threshold .......
  • Toby | 25 Apr 2013, 04:33 PM Agree 0
    You dont mention the existing house yields less rent also because they lost there privacy, yard etc etc
  • Toby | 25 Apr 2013, 04:36 PM Agree 0
    Can have a granny flat in all qld councils as far as im aware... look into it. I have one on my Brisbane investment property, we are not allowed to rent them outside family, but we are also not restricted by size like nsw ( mines twice the 60sqm nsw maximum) for example...
  • Guddi | 23 Aug 2013, 01:03 PM Agree 0
    I just learnt from an agent that the councils charge you two sets of rates if there is a granny flat in the house. One for the main house and one for the granny flat.
  • Mike Ross | 28 Sep 2013, 05:22 AM Agree 0
    Is is possible to get turf installation in victoria for a residence?
  • Sam Dcruz | 24 Dec 2013, 10:15 PM Agree 0
    Granny flats are good to use only after it is made with proper planning and with all the issues prepared properly on documentation so that it is used as a legal property. In fact it gives you privacy and you can stay with your family.
  • Shane | 04 Jan 2014, 12:10 AM Agree 0
    Brisbane City Council calls them secondary dwellings and they do not have to be occupied by a family member ; the City Plan allows for up to 5 unrelated individuals in main & secondary dwelling. There is a size limit of 70m2 but this is increasing to 80m2 in the new City Plan 2014.
    The City Plan does not mention anything about leasing arrangements.
    You'll only get the one Rates notice but it's charged at a higher rating category (multi-residential) which is almost double the normal rate. The BCC rates department will tell you that the higher charge is because you can rent the secondary dwelling separately to the main house.
    Each council is different so best to check out the rules that relate to your local council first.
  • Tracey | 16 Jan 2014, 01:47 PM Agree 0
    Ipswich City Council in Qld now allows granny flats. See Ipswich Granny Flats website run by Vision Property Group.
  • Shirley | 27 Feb 2014, 07:48 PM Agree 0
    In Queensland chat to the guys at Queensland transportable homes they were a great help and we got a great quality build and they are great to deal with
  • veer | 08 Apr 2014, 12:26 PM Agree 0
    this information was really good. can somebody tell me that can we build a double storey house in australia. ground floor can be rented and myself can live on first floor.
  • Jo | 11 Apr 2014, 09:13 PM Agree 0
    In reply to veer, in NSW you can, as long as your own floor has a separate entry. There would be a problem with the floor area however, as the granny flat should be a maximum of 60 square metres. Better if your live on the ground floor & your smaller granny flat is located upstairs.
  • Laurie | 11 Apr 2014, 09:21 PM Agree 0
    We own an old building currently converted to an office on residential-zoned land in NSW. We're uncertain if the old building was ever used as a house, although it could have been as it has an existing toilet, shower & basic kitchen etc. We're interested in converting part of the existing office to a granny flat, but retaining the balance as an office. Does anyone know if we can do this?
  • carolyn | 28 Apr 2014, 04:57 AM Agree 0
    450.00 a week? Who pays that?
  • kel | 04 May 2014, 03:53 PM Agree 0
    Can you put an application to brisbane council for a house and temporary dwelling. Live in the temporary dwelling while building the main house. Once the house is complete, convert the temporary dwelling to a granny flat
  • Mars | 15 Jun 2014, 12:24 PM Agree 0
    Hi guys thanks the info.
    I live in the inner suburbs of Perth Wa. I want to divide part of the house into a self contained flat. I know I can have a second power and water meter but am having trouble getting prices for doing this. Does anyone out there know how much these things cost and how to manage the separate bills, disconnections, re connections?
  • JJ | 23 Jun 2014, 12:53 PM Agree 0
    I have a property under the Indigo shire ( nth east Victoria). It has a 55m2 portable granny flat, admittedly, it was transported on the property in the 1980's as a main dwelling. After this I built another seperate dwelling behind it of about 350m2. The property is not subdivided OR stratatitled and I was very surprised upon completion to be sent 2 sets of rates. One for each building. I think it is revenue making by council. Because of 2 set of rates I also get 2 lots of land tax. One triggers the other. Double dipping in both cases yet I cannot sell them off seperately unless I strata title them and provide seperate service connections ie water, electricity etc. Government and Local council greed for taxes leaves everyone disgusted.
  • John | 02 Jul 2014, 09:12 PM Agree 0
    Triple your rents? Using the blacktown house, 350 +200 = 550. Since when did 350x3=500?
  • Kel | 30 Dec 2014, 11:06 PM Agree 0
    If it sounds too good to be true - it usually is
  • dee | 23 Jul 2015, 10:15 AM Agree 0
    My son, 46, has had 2 bad marriages and no longer has a house. He has his own business which does not make much money but does not want to go to Centrelink for help. I have a 3 story house, the bottom garden level (man cave) is where he now lives(granny flat). Is there any way I could give this to him and then he would have more security. Are there any changes coming that would allow me to do this. I am on a part pension, living in Killcare, NSW, Thank you
    • JoJOoo | 25 Nov 2015, 07:21 AM Agree 0
      dee in order to deal with the bottom level separately (ie to transfer it to your son) I think you would have to strata it, which might require insulating, sound proofing levels, separate entrances, electricity and water metering, etc. See a planning or development officer. That would entail contributions to the council (to create another lot), double rates, and also you would need to get a valuation so he could pay stamp duty on the value of the property transferred, plus the cost of surveying and creating a strata plan. An expensive exercise.
  • PeterSun | 11 Aug 2015, 12:55 AM Agree 0
    Oh, I also think granny flats are great especially for property investors. since they are relatively cheap to construct and can increase the rental yield to nearly 10 per cent. This extra income from rent can also help out those wanting help to pay off their mortgage, as the weekly rent obtained from these dwellings can be enough to cover the repayments.
  • Mike | 13 Sep 2016, 05:17 PM Agree 0
    Useful article, and I second the advice to use a comparison site to get an idea of costs and what is out there. We used and I was happy with the results. It is important to think it through from all angles though. I think this is a good read. Beware of capital gains tax!!
  • gjsmith826 | 04 Oct 2016, 09:41 PM Agree 0
    Your trick is really nice and I am sure it will help a lot.Thanks for sharing with us.
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