granny flat yes or no?, page-4

Personal place of residence. ie the house you own and live in that you do not pay capital gains tax ( CGT) on. They are suggesting you don't muddy your PPOR CGT free status by complicating it with a granny flat that you rent as it gets complicated. Really depends on property , style and way the numbers add up for teh demand in your area and remember you have to find tenants that are compatible especially if you are in any way sharing driveways, backyards, lawn area and so on. It depends what style of person in your area you would rent the granny flat to - student, elderly, young couple or family?

By all means do it on your own PPOR but do it as a capital investment if the area you are in has demand / or you have demand for a separate residence for your uni going kid , granny moving in etc as it adds value to your lifestyle of having kid or granny about but not formally getting rent ( rather saving paying it to campus fees or old folks home).

A better investment can be to investigate what is required in your area for a proper dual occupancy so you can sell with approval and design and never actually have to build but have increased value by doing all the preparation.