With our first Lifestyle Seminar complete, we wanted to share some of the information discussed throughout the event with you. For those of you who weren’t able to make it, we’ve collated some of the key points from our first seminar.
Our first seminar contained an array of vital information and aimed to answer some of the frequently asked questions we get when it comes to building a granny flat. To present the seminar, we partnered with Morgans and GLG Legal. The topics covered in the seminar included:
- General Granny Flat Information
- Financial Implications and Considerations of Building a Granny Flat
- Legal Implications of Building a Granny Flat
General Granny Flat Information
Building a granny flat is a significant investment, one which can, at times, be confusing and challenging. From renting out granny flats to understanding council approvals, we stepped through the most important information to consider when thinking about building a granny flat. Our key lesson from this part of the seminar was the importance of finding the right builder to help you bring your granny flat vision to life. After all, the builder you choose can make or break your project.
Not sure where to start? Here are six questions you should be asking builders before contracting them to build your granny flat.
- Are you licensed and insured?
- What kind of guarantee do you offer?
- Do your designs comply with granny flat regulations?
- Why should I trust you to build my granny flat?
- Can you provide me with references?
- What am I getting for my money?
Financial Implications and Considerations of Building a Granny Flat
Although you may know that you would like to live in a granny flat, you may be wondering if you can really afford it. Throughout the seminar, Morgans walked us through some of the most important financial implications and considerations of building a granny flat. Different living scenarios were used to highlight various investment options for a granny flat. Our key learnings from this part of the seminar were the list of important financial aspects to consider when deciding to build a granny flat.
Important Financial Considerations
- Eligibility to receive a carer payment or allowance
- Children who may also be receiving a Centrelink payment
- Early inheritance to children
– What is the risk/reward
– Investment timeframes
– Tax consequences
– Estate planning opportunities
- Recently legislated ‘Downsizer Contribution’ to superannuation
– $300,000 allowable superannuation contribution ($600,000 for a couple) following the sale of your primary residence of at least 10 years
Legal Implications of Building a Granny Flat
While building a granny flat is an exciting time for all involved, there are legal implications that are often overlooked. During the Lifestyle Seminar, GLG Legal walked us through critical legal issues to consider before building a granny flat. Our key takeaway from this presentation was to be aware of two legal topics: Life Tenancy/Right to Reside and Transfer Duty Implications
What is Life Tenancy or Right to Reside?
Life tenancy is a term used to describe ownership of an asset for the duration of a person’s life. Once the tenant dies, ownership of the asset goes to the Remainderman.
A right to reside is an entitlement to occupy a property for either a specified time or for the lifetime of the beneficiary. A life tenancy is registered with the land titles registry and will appear on the title of the land whereas a right to reside cannot be registered with the land titles registry and will not appear on the title for the land.
What is Transfer Duty?
Transfer duty or stamp duty applies whenever you buy or transfer property in Queensland. The transfer is calculated on different rates depending on a variety of situations, such as granting of life tenancy, which all need to be considered.
As you can see there are a lot of complexities to consider before building a granny flat. But rest assured, Lifestyle Granny Flats is here to make the process simple! With different solutions to suit your needs, you can find the perfect fit for your lifestyle. Our expert team has extensive experience and will guide you through the process of building your dream granny flat.
Do you want tailored answers to your questions? We’ll be running more seminars in the months to come!