Second dwelling on single title

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NOS1
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@nos1
Join Date: 2008
Post Count: 32
April 17, 2009 - 1:52 am
Hi all,
Just wondering if any one could advise the tax implications of putting a second dwelling on a property with one title.Do they have to be on separate titles to claim tax benefits such as claiming the loan repayments.
Any advise on this issue will be greatly appreciated.
Thanks in advance
NOS1
IP Freely
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@ip-freely
Join Date: 2008
Post Count: 353
April 18, 2009 - 5:40 am
Having 2 on one title is not a problem however you should get a valuer to assess what each property is worth (to create/assign your cost base) and a quantity surveyor to assess how much depreciation or other costs that you can apportion to the investment property.
Kenten
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@kenten
Join Date: 2009
Post Count: 17
April 20, 2009 - 4:49 am
my answer not completely relevant to your question.
But just a word of warning to abide by any local council rules/regulations when relocating or building another dwelling on your block. I bought a place one title has a two bedroom house in the front and a 2 bedroom unit out the back. house is classified as a semi – detached dwelling. All parties are supposed to be related ie: family or company and both dwellings can only be rented as one entity – even though they have seperate power and phone connections. Land area is legally large enough 820M but there is an issue with access to the back unit so it can never be classified as a duplex.
NOS1
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@nos1
Join Date: 2008
Post Count: 32
April 20, 2009 - 5:20 am
Thanks for your feedback. Kenten do you know if the dwellings are side by side then can they be rented out as seperate entities?
Do different councils have different rulings on this?
Kenten
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@kenten
Join Date: 2009
Post Count: 17
April 20, 2009 - 10:12 am
Sure can when I was working for a house removal/ re-stumping company we moved two houses onto the one block. Big block about 1200 sqM but this was approved by council before we began – they were going to rent both out. The main issue with the investment property I bought was no access or vehicle parking for the rear dwelling. As for do councils have different criteria for development approval – not sure sorry – best to make an appointment and find out exactly what you can do. Good plan though keen to do something like that myself but the piggy bank has dried up.