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Thread: would there be a demand for a granny flat?

  1. #1
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    Default would there be a demand for a granny flat?

    looking at a house to buy that has a whole level which is like an appartment/granny flat. there would be wireless, a pool etc. would any of you think there would be a call to rent it out for arriving ex pats to find their feet and / or for holidays etc?

  2. #2
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    Don't know your specific area, but we've seen a lot of rentals listed like that. And longer term then when we come to buy then we'd be considering something like that too for visitors (including parents). I gues it depends if you need the rent ot make it work financially, or if the flat means tha the main house for you isn't big enough.

    Edit to say, as this is a housing discussion, then I must add the following keywords into the post: Damp, heating, poor build quality, expensive, damp, cold, damp.

  3. #3
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    I think that's a really good idea Mr V, if you and the family don't mind people coming and going.

    I would check out the holiday let market and see how competitive it is in your particular area. Also bear in mind that there has been talk of capital gains tax being introduced on rental properties in NZ.

    See link: http://www.grantthornton.co.nz/Press...gains-tax.html
    Last edited by Arwen; 20th January 2010 at 08:40 PM.

  4. #4
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    @duncan,,, take it as read lol
    @ arwen,,, its part of the house so would come under rent a room really. just exploring the idea.. i reckon you could charge 250 a week on an adhoc basis and see what occurrs?

  5. #5
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    Have to say MrV it is what we are thinking of doing as well, if we can manage it! Basically because the thought of the inlaws in the house for more than 6 hours at a time drives me nuts ...so if they are coming for 6 weeks I would like them to be somewhere separate (sort of, if you know what I mean) so that we all have some space! If we can't do it DH intends to build a sleep out, hopefully with ensuite! Well, if the main house will be cold, damp, etc.etc. what difference between house and sleepout??

  6. #6
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    Our grandchildren's Kiwi grandparents have what sounds like just the same kind of flat under their house, which has been let pretty regularly to nurses working locally to them. They seem perfectly happy with the set-up, and apparently don't mind the tenants coming and going that close at hand. (I think it might bug me, unless what I was letting out was a sleep-out at a distance from my space, but that's a personal thing.)

  7. #7
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    Small high-rise apartments are the black sheep of property investment here in NZ, apparently! I've recently explored the idea of buying two tiny 27m2 studio apartments but no banks will offer me a loan because such a property, although very cheap and generates a good positive cash flow approximately 8% return on investment a year, takes forever to sell and with little capital gains. Just about everybody I've talked to say they wouldn't touch it with a barge pole, but I disagree and would have purchased it if I can arrange financing.

    I guess the typical Kiwi mindset on property investment is that if they cannot sell it within 5 years for a reasonable profit, they won't buy it. The proposed new land taxes etc might change that, and could make practically land-less high-rise apartments a better investment?

  8. #8
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    I highly doubt any form of capital gains tax aimed at property investors will go in NZ. Politically, those parties themselves have a vested interest and know it that CGT is effective at discouraging speculators. From what Bernard Hickey mentioned on talk radio this morning, the most likely outcome would be a Land Tax which would apply to ALL land titles much like city property rates. So not only the landlords will pay but also the 1st time home owners too will pay this annual tax.

    DO NOT FORGET - the goal is to generate MORE TAX REVENUE

    The excuse for not seriously considering CGT is because they thought kiwis could not understand it and how to administer it (which I though was funny since every developed nation doesn't appear to have problems in assessing CGT). It's another way of dumbing down NZ society that they believe CGT is something out of this world. From the NZ gov't side, they prefer an instant cash flow instead of allowing the option to defer future tax on capital growth.

  9. #9
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    As we are in the category of in-laws (actually parents) who drive the family nuts we would be interested in being able to give our kids some breathing space.
    Even the fact that we made a financial contribution to the house doesn't prevent tensions when we want to visit for 6 months.
    Probably should start another thread but we would be glad to hear from anyone on the forum who could provide us with a week's cheap accomodation!

  10. #10
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    We're planning to do something very similar, and have rented out rooms in our home to lodgers before. So long as there's a demand in your area, you should be fine

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