Investors are also being attracted to granny flats due to their affordability and capacity to achieve high rental yields. Data from our depreciation schedules suggests that while the average granny flat will cost $121,000 to construct, the owners can usually achieve a 15% rental yield on this investment.
In order to maximise the benefit of this yield, it is important for granny flat owners to understand their depreciation entitlements. When a secondary dwelling is income-producing the owner is entitled to substantial deductions due to the wear and tear of the building structure and the plant and equipment assets contained, even if they are currently occupying the primary residence on the property.
Research conducted by BMT Tax Depreciation has shown that the average first year depreciation deduction for a granny flat is $5,288, accumulating to $23,713 in deductions over the first five years of ownership.
Shared areas between the granny flat and owner-occupied property such as patios, pools and barbecues may also entitle the owner to additional depreciation deductions, claimed based on the tenant’s usage percentage…
Read more as the below link:
http://realestatetalk.com.au/growth-in-granny-flats-is-golden-when-depreciation-is-claimed
Source: realestatetalk.com.au
