Greetings all
Can any one tell me if I can rent out a house and a unit both on the same block to different people?
The unit is like a granny flat, but its fully self-contained and set out like a unit with 2 bedrooms, lounge, kitchen dinning area, bathroom and laundry as a two in one.
I am considering living in the house myself and renting out the unit, but I was wondering if I decided not to move in myself could I rent it out to 2 different people/families?
Regards Bear
Yes – you can. I’m doing it at the moment and renting out to different tenants (located in the ACT). Keep in mind that doing so will cause your potential tenant pool to shrink as some people like to “own” the complete block.
You do need to keep in mind that even if you live in one and rent the other out, the whole property might be liable to extra land tax and have potential GST implications. We’re renting out both houses, so there’s no problems for us.
It is a great way to increase the cashflow though.
Thanks Naughty Johnny for your reply.
I understand about the people wanting to owe the whole block, however the unit is seperatly fenced to the rest of the property. The land acually has 2 titles, so its a big block, but the house is so big it goes across both of the titles.
I dont understand how the GST could be on the whole property? I thought i would only have to pay the GST on the rental income itself?
Regards Bear
D’oh. Meant CGT, not GST.
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