Airbnb, permanent rental or granny flat: which produces the better return?
In the second article of this two-part series, Matt Heron compares the income, costs and potential tax consequences of Airbnb accommodation, a permanent studio rental and a granny flat.
Turning an underused garage into rental accommodation can generate income with far less upfront capital than building a separate granny flat. (Image source: Shutterstock.com and API Magazine)
In my previous article
I looked at what can happen to the main residence capital gains tax exemption when part of the family home starts producing income.I used two examples. The first involved spending around $30,000 converting an unused garage or part of an existing home into a self-contained studio with its own bathroom and small kitchenette. The second involved spending $200,000 building a new two-bedroom granny flat.
There is also a third…
