Hi, first post!
I have a house with a seperate room/workshop area out the back, I would like to convert this into a granny flat. Bathroom, small kitchen area etc…
My question is will I be able to get an investment loan for this? I would like to get a loan for this, but not as part of my house loan, I also have an Investment property (unit) loan.
I would like to either get a seperate loan, or extend my existing investment loan to do these renovations.
Can I do this? ie. can I get the loan and claim expenses/interest etc on tax?
Also, power is already connected to the room, but should I get a seperate meter for the granny flat? or just include the electric bill as part of the rent. (ie charge extra $10 a week for elec).
Phone would also need to be connected… And major work would be required for the bathroom.The room would need an air-conditioner as I am on the gold coast.
Also, is it ok to have the one sink in the bathroom, or should I also have a sink in the main room? The bathroom and Main room would be seperated by a sun-room, or something similar.
Any opinions and thoughts appreciated.
Thanks
You could get a separate loan for this but since you home will only have one title it will depend on total LVR, ie your current loan and your current debt on this property.
You also better check with council on meeting all of their regulations.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Yes, will have to check on council information…
At the moment I believe I could get the loan fine, my concern is can I claim these expenses, and loan interest on tax?
If I cannot claim the interest and expenses on tax, it becomes more like an extension to my own house then an investment…
In fact if that was the case, I would consider buying a new house, making this one an investment, and then doing the renovations (granny flat etc) as everything done then I could claim.
Moving house though is a very big decision, so it would be easier if I could just claim all the costs for the granny flat as an investment.
The reason why I think i may not be able to claim the costs for tax, is because it is not currently being used as a rental room, therefore is not currently an investment, and therefore I may not be able to claim any expenses until the room has been finished and a renter found!!!
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