Quick question..I'm trying to give some advice to my cousin who is about to buy herself her first house. She is planning to buy a house with a granny flat to rent out to friends. From my understanding she will be able to rent that out and take a percentage of her interest rates payments and expenses come tax time as an investment property… that is maybe 30%.
For example $100 a week rent may equal 40% of interest rate payments on her mortgage, and maybe 40% of value of depreciation schedule, as well as expenses incurred per normal rental agreement on property (rates, tax, insurance).
IS MY ADVICE RIGHT? and could she handle the rent herself with a receipt book or would it be better to go through the correct people, a real estate agent for example? Any help appreciated. Cheers
tugger
Tugs, with regards to managing the property, as it is in the backyard, your coz will be seeing them regularly – it is not worth having an agent manage the property. I would recommend that she get a lease (standard copies available from the newsagent), lodge the bond and issue the reciepts. You might get an agent to give you an idea of the market rent if you were to lease out the GF.
As for how much is claimable, consider using a QS on both the house & GF and get them to apportion the costs accordingly.
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