This week, Ipswich & Logan Granny Flats bring to you 4 reasons why moving into a granny flat could work for you.

Whether you’re just moving out of home, starting university, wanting to downsize or simply want your own space, granny flats are the perfect (and affordable!) option for everyone!
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Read and enjoy…

According to Google, the term “granny flat” is an informal British phrase that refers to the part of a house that is made into self-contained accommodation suitable for an elderly relative.

According to me, the term “granny flat” is an informal British phrase that refers to the part of a house made into self-contained accommodation suitable for a young, newlywed couple.

I recently married my best friend, and we live in a tiny house called a granny flat. It’s basically one big room, with a small kitchen and bathroom attached to it. Just as my husband and I became one through marriage, so did our dining room, bedroom and lounge. Our dining table literally sits 3 feet away from our bed, and our couch is close nearby.

I know that to most people, this living situation doesn’t sound ideal. Pets are an obvious no-no and should we fall pregnant, we would definitely have to move. But I love our little home and am convinced that every young couple should move into a granny flat together.

Here are four reasons why:

1. Living in a granny flat forces you to sort your crap out quicker.
When my husband and I were dating, we spent a lot of time at my parent’s two-story house. This meant if we ever fought about something in the spare room downstairs, I could (and would) easily walk away from my boyfriend, up the stairs and into my private bedroom, like a childish drama queen.

These days, if my husband and I argue, I can’t just walk away. I have nowhere to walk to. We can’t simply avoid each other because we can see each other from any spot in our granny flat.

It means we have had to learn how to restore our relationship more quickly. As a result, we no longer fuss over the small and ultimately meaningless things. And when we do fight, our tiny home forces us to act like the mature, forgiving, gentle and understanding spouses we are striving to be.

2. Living in a granny flat helps you to not obsess over material things.
When I was living in my parent’s house, I could buy as many items of clothing as my bank account would allow (which isn’t many), and I’d always have a place to put them. But when I moved into my granny flat, I could only bring with me the clothes I wear often. There is no place for that faux-fur shawl, those glittery gold pants or those sky-high heels.

Living in a small home helps you not to love, hoard or obsess over unnecessary things. You figure out what the life essentials are, and you see the nonessential material items for what they ultimately are: wastes of space and money. As a result, you use the space you do have more wisely, and you end up saving big bucks when you realize you don’t “need” that light box or terrarium.

3. Living in a granny flat allows you to deepen your relationships.
Got a small home? Well, it’s time to kiss house parties and large gatherings goodbye. But it’s also time to kiss small catch-ups hello. Living in a granny flat with your partner means you can have a maximum of three guests over at one time.

This might sound lame, but ultimately it results in the ability to actually sit down and have proper personal conversations with each of your friends or family members. Unlike at a party, you don’t have to roam the room jumping from one group of people to another.

You have the opportunity to focus on your relationships with your loved ones by giving them the quality time and attention they deserve.

4. Living in a granny flat will make for great stories in the future.
As much as I love our little granny flat, I know that my husband and I will one day have our own house. I look forward to the day when I’m sitting in this house, surrounded by my children, and I turn to my husband and say, “Remember when we lived in a shoebox? Started from the bottom, now we’re here.”

This week, Ipswich & Logan Granny Flats bring to you some information on the Government’s brand new Queensland First Home Owner’s Grant.

There’s also a one-off 12 month boost of $5,000 to the grant, which is now worth $20,000.  

If you’ve been considering building or buying a new home, this is the time to do so!
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Read and enjoy …

​The Queensland First Home Owners' Grant is a state government initiative to help first home owners to get their new first home sooner. Depending on the date of your contract, you’ll get $15,000 or $20,000 towards buying or building your new house, unit or townhouse (valued at less than $750,000). You can even buy off the plan or choose to build yourself. It’s a great opportunity to buy or build a new home in our great state.

How a Queensland First Home Owners' Grant can help you

• If you're thinking of buying or building a new home, this could be what gets you started
• It could get you something more than you were expecting
• It can get you into your first home sooner

Note:  The $20,000 Queensland First Home Owners' Grant is not available to contracts that replace previous contracts entered into before 1 July 2016.
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To be eligible for the grant:

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CALL SONIA 0403 309 136

This week, Ipswich & Logan Granny Flats, the largest builder of granny flats in South East Queensland, bring to you a fantastic article on the ever-growing Moreton Bay region! Moreton Bay has been on property market expert watch lists for a while, and now the gorgeous bayside has overtaken Logan City as the strongest market in the region.  This comes at a perfect time, as we are about to launch MORETON BAY GRANNY FLATS – so if you have granny flat and/or investment property questions or queries and want to ask somebody who is knowledgeable and experienced within the region, call Sonia: 0403 309 136. 

The Moreton Bay region has overtaken Logan City to be the strongest market in the Greater Brisbane area.

According to the latest Price Predictor Index Winter 2016 report, property analyst Terry Ryder from Hotspotting, said the two strongest markets had affordable areas on the fringes of the Greater Brisbane region, showing Brisbane’s growth cycle may be nearing its end.

While Logan City remains strong and continues to be one of the nation’s standout markets, Moreton Bay now has a larger number of growth suburbs – 15 to Logan City’s 13.

Mr Ryder said overall the number of growth suburbs in the Greater Brisbane area had declined due to the economy.

“The overall underlying economy hasn’t been as strong, NSW which is primarily Sydney has been the number one economy in Australia for a couple of years now and its infrastructure spend has been the highest, Brisbane doesn’t compare with Sydney on those two terms so the price growth has not been as big, but never the less there has been activity,” Mr Ryder said.

“Now it is just a question of whether it is on the way down or whether it resurges again.”

Rising suburbs in the Moreton Bay region include Bellara, where sales in consecutive quarters have been 17 up to 40; Narangba, where sales numbers were lifted from 91 to 139 in the past five consecutive quarters; and Kallangur, where sales in the past seven quarters have been 149 to 170.
The data shows growth markets include Narangba (median house price $450,000), and Kallangur ($360,000), both of which make the list of the top 25 growth markets in Australia.

Mr Ryder said growth activity would depend on a number of things including investors looking for somewhere else to buy.

“A lot are still looking at Brisbane, better yields, more affordable property, and of course the Gold Coast just down the road, in terms of municipalities it is the number one market in the country still,” he said.
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“It has been number one for the past four or five reports now.”

Regarding your answer on June 19 about a granny flat being rented out: There was no mention of the value of property area used for the granny flat being added to the value of assets counted, which is what happens and the Centrelink value is quite hefty, as I found when I retired. I was unaware of it and nor was it pointed out at a Centrelink retirement seminar I went to just prior. It's counted just as financial assets are but, of course, one can't sell it separately or raise capital. As you know the situation worsens on January 1, 2017, especially in the modest/medium range of $300,000-$400,000 and from my experience of Centrelink's granny flat values, it could take them over the limit. Another thing that wasn't in the Info Pack at Centrelink retirement seminar some years ago is what happens with a property investment loan if you still have the loan at retirement? This is why your column is helpful, to clear muddy waters. E.M.

You are right, it can prove a complex matter, so let's clarify. When you, as an age pensioner, rent out your granny flat, the rent (excluding expenses) is counted by the income test. However, where you have a lodger in your home, you can choose a simpler formula that counts expenses as 30 per cent of the rent, to which you can include any mortgage interest or even rent, if you yourself are living in a rented property.

If the area being rented is a self-contained living area, and rented to anyone other than a member of your immediate family, it will also be assessed by the assets test. Its value will be based on a pro-rata percentage of the floor space of the overall property. Obviously, if you have a home in a capital city, this asset value could amount to many tens or even hundreds of thousands of dollars.

However, if the area being rented is an integral part of the customer's home, for example, a room with an en suite rented to a lodger but with no kitchen or lounge area, it will not be counted by the assets test.

If you have a mortgage on your home, it is usually ignored by Centrelink because the home is not counted by the means tests. But if you are renting out a granny flat that is being counted as an asset, and you have a mortgage, then a portion of the mortgage will reduce the asset value being counted. For example, if the area of the self-contained granny flat being rented is 15 per cent of the total value of the home, the asset value counted will be reduced by 15 per cent of the value of the mortgage. Similarly, the income test will reduce the net rent being counted by 15 per cent of the mortgage interest.

You mentioned a property investment loan – that is a mortgage on a property that you own but are not using as your residence. Only the net value of the asset is counted by the assets test; that is the test counts the value of the property reduced by the loan. This is also true for margin loans used to buy shares and managed funds.

There is a twist if you have used a loan to buy financial assets such as shares or managed funds in that the income test subjects the gross (not net) portfolio value to deeming; that is for a couple, the first $80,600 ($48,600 for singles) is deemed to earn 1.75 per cent and the balance, 3.25 per cent. Note, also, that the deemed income is NOT then reduced by the interest paid on your loan.

Hopefully, the water is now much less muddy!

Recently we sold our home and business and are now renting for 12 months. The question is how to protect and increase our capital of $3 million now and the $1.5 million remaining in May 2017, after we buy the next house. The aim is to have an income stream to fund the last segment of our life. We also would like to leave assets for our children who struggle to get into the current property market. We are fit and active, in our late-60s, have been self-employed most of our lives. I actually miss working and have been looking at businesses to buy. My ideal is to invest $100,000-$300,000 in a small business, set up the necessary controls, put in 25-30 hours a week myself and hopefully net $2000 a week. The puzzle is to know where to place the money since term deposits no longer yield enough? A.A.

Just as setting up a business requires you to take time scout around and research your market environment and its opportunities, so it is with placing investments.

All the signals tell me this shock wave emanating from the Brexit decision is not going to be a short-term phenomenon. I have long argued that the history of monetary unions between disparate countries indicates that the euro under its present structure is not viable in the long term. It has already caused recessions with high unemployment in countries such as Greece and Spain that have lasted longer than Australia's Great Depression in the 1930s.

Looking at the geopolitics behind it, the nationalist wave that propelled Brexit is similar to that behind Donald Trump's extraordinary rise and must reduce the odds of his winning the November presidential election. Such a win, if it were to occur, would be likely to produce another disastrous "Lehman moment" across world sharemarkets.

So for now, your strategy should be on capital preservation rather than capital growth. In such an environment, I would be looking at capital guaranteed investments for that money set aside for your new home and I can't go past term deposits in banks or institutions that carry a government guarantee on the first $250,000 invested. Google Canstar and Infochoice for the best rates.
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Also, if you do not have enough for a comfortable retirement, consider maximising your super contributions.