Perth Granny Flat under NRAS

I am seriously considering this and want to hear your thoughts.

NRAS eligible ancillary dwellings for Disability or Aged Dependents from Questus.

I went to see the Module yesterday, although small 45sqm it does have the advantage of being pre-built and it is possible to extend to a larger unit with a second bedroom and ensuite (obviously at a higher cost). The package is turnkey, can be delivered within 12 weeks after approvals and is $100,000 plus site costs.

It's a bit on the high side for 45sqm but the NRAS incentive makes that point moot (would you agree?), also the bathroom and general design is suitable for disabled access, wheelchairs and mobility aids, the steel joists can take a hoist (extra cost for hook to be installed) these are features that would add cost to any unit.

Basically the incentive will pay for the unit within 10 years.

This is great news for us as we already earmarked part of our PPOR land for a granny flat which we would rent to a person with a disability and we already have a 4x2 townhouse under NRAS so we are comfotable with the process.

Would other developers be interested in placing a unit on their land to rent to person with a disability, there is a huge shortage of affordable housing for people with disability and they are great tenants (I know that because I work for a disability support organisation and frequently make home visits).

So what do you think?

Caz
 
My only problem with it would be the value of the module. If it is inflated then it would be a no go for me. I'm not paying to have NRAS, NRAS should be paying me :)

I imagine it would be hard to finance such a deal as well as it's a prebuilt/transportable?

So if all the sums work at normal rates and the NRAS is a bonus on top of that then I say 'yes!'

And Questus is one of the better NRAS companies so that would help my decision.
 
I am seriously considering this and want to hear your thoughts.

NRAS eligible ancillary dwellings for Disability or Aged Dependents from Questus.

I went to see the Module yesterday, although small 45sqm it does have the advantage of being pre-built and it is possible to extend to a larger unit with a second bedroom and ensuite (obviously at a higher cost). The package is turnkey, can be delivered within 12 weeks after approvals and is $100,000 plus site costs.

It's a bit on the high side for 45sqm but the NRAS incentive makes that point moot (would you agree?), also the bathroom and general design is suitable for disabled access, wheelchairs and mobility aids, the steel joists can take a hoist (extra cost for hook to be installed) these are features that would add cost to any unit.

Basically the incentive will pay for the unit within 10 years.

This is great news for us as we already earmarked part of our PPOR land for a granny flat which we would rent to a person with a disability and we already have a 4x2 townhouse under NRAS so we are comfotable with the process.

Would other developers be interested in placing a unit on their land to rent to person with a disability, there is a huge shortage of affordable housing for people with disability and they are great tenants (I know that because I work for a disability support organisation and frequently make home visits).

So what do you think?

Caz

My first thoughts are: are you Ok about losing part of Ppor CGT free portion? What if your circumstances change? Would it be better to do without NRAS?
 
Check out this thread regarding possible loss of CGT exemption when building a granny flat:
http://somersoft.com/forums/showthread.php?t=94012
It sounds pretty complicated! My sister started having health issues a few weeks ago. She has quickly deteriorated. She can barely do anything for herself so my parents have been mostly caring for her. She is happier in her own home but finding it difficult to shower, dress, brush teeth, eat, etc. even walking or holding a phone is difficult. She hasn't got test results back yet, and I think it will be a long time before we know how this will affect her future. I suggested to my parents maybe a granny flat on their property would be the way to go if she continued with these episodes. I wonder if that would be CGT exempt? I was thinking my sister could pay for it with proceeds from selling her house. Hopefully it doesn't come to that and her health improves, it's probably pretty messy long term also as my parents age.
Maybe she should rent something like these NRAS units instead?
 
I investigated the CGT impact a while back when we first thought to add a granny flat, without NRAS. I got advice from an accountant that specializes in CGT and I am comfortable with the numbers.

I will double check but NRAS should not make any difference, should it?
 
It sounds pretty complicated! My sister started having health issues a few weeks ago. She has quickly deteriorated. She can barely do anything for herself so my parents have been mostly caring for her. She is happier in her own home but finding it difficult to shower, dress, brush teeth, eat, etc. even walking or holding a phone is difficult. She hasn't got test results back yet, and I think it will be a long time before we know how this will affect her future. I suggested to my parents maybe a granny flat on their property would be the way to go if she continued with these episodes. I wonder if that would be CGT exempt? I was thinking my sister could pay for it with proceeds from selling her house. Hopefully it doesn't come to that and her health improves, it's probably pretty messy long term also as my parents age.
Maybe she should rent something like these NRAS units instead?

I believe it will only effect cgt status if they earn an income from it by renting it out to an unrelated party. Family staying in the granny flat wouldnt effect it.

Cheers
 
I believe it will only effect cgt status if they earn an income from it by renting it out to an unrelated party. Family staying in the granny flat wouldnt effect it.

Cheers
The article I quoted, quoted this post.

Having family staying in the GF won't affect CGT status- but renting it out afterwards becomes a more murky area.

The article suggests that even with family, it should be treated as a separate room to the main house to keep CGT exemption, with the occupant joining the big house for meals etc.
 
finance could be curly too, since grannies typically add 70 c in the dollar to the value in well established dwelling typical granny areas in NSW .

With the legsilsation being far more recent in WA, its quitelikley that a valuer would struggle.

Not an issue if you have oodles of equity and are looking mainly for cashflow.

Finally, onthe finance, some lenders wont funds grannies at all, many at restricted LVRS and only a few at normalish Lvrs

ta
rolf
 
I believe it will only effect cgt status if they earn an income from it by renting it out to an unrelated party. Family staying in the granny flat wouldnt effect it.

Cheers

The article I quoted, quoted this post.

Having family staying in the GF won't affect CGT status- but renting it out afterwards becomes a more murky area.

The article suggests that even with family, it should be treated as a separate room to the main house to keep CGT exemption, with the occupant joining the big house for meals etc.
Thanks, it's so hard to read that writing from the article on a mobile phone, I'll print it out an have another read.
 
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