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Hi Virgo, I've heard of ppl using pre-fabricated ones like this http://www.parkwoodhomes.com.au/. Haven't used them personally but I was told it's a lot cheaper and faster too. How do you charge your tenants for electricity or do you pay for it yourself? If you don't mind can you please PM...

The land under the granny flat would be subject to CGT if you rent out the granny flat. I think you will need to do a valuation and apportion the land value before you build. Speak to your accountant.