wealth How to create

The upfront costs of building a dual-occupancy home can be considerably higher than a granny flat but the investment rewards are far greater.

• Generate an income stream by renting the new home, or live in it and rent the original dwelling. Don’t forget you’ll need to pay tax on the money earned.

• Subdivide the property into two titles and sell one or both of the homes. Just remember that capital gains tax may apply, so always seek advice.

• Understand the tax benefits to be had on your investment, including claiming the interest on your loan and other costs such as insurance and rates.