Hi everyone
Our home (PPR) in Sydney is valued at around $630,000 with a mortgage of $265K . We are looking at putting a granny flat ( approx $85K) at the rear of our property .We will be renting it out at about $380
1)I am worried about the CGT implications when we do eventually sell the property. Any advise on how to minimise or dodge this would be appreciated.
2) We will need finance would we be better of going to our original lender ( Westpac) or going to a different company altogether.
Thanks Paul
1. Make sure that you create a separate loan account so that you do not contamanate the tax deductible interest for that portion of the loan.
2. Make sure you get a decent Granny Flat builder – there are lots of builders doing GF's now days in Sydney and some are expensive and some do a really bad job.
3. Try and ascertain the DA via a private certifier – a bit expensive upfront but will save you time and money in the longer run
4. Valuation is going to a big variable and unfortunately Westpac doesn't allow for upfront vals on construction loans. Having said that you have plenty of equity so you should still fall under the 80% LVR mark. Other than rate I cannot see a obvious reason for you to need to move.
Which part of Syd is the GF?
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
GF tax issues are very complex. You need to seek advice as there are some strategies to reduce the impact.
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
Thanks for the feedback guys
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