Forum Replies Created
AC80, so many things to think about!
Regarding the renovation, a starting point might be to look around at properties for sale and rent in the local area, and work out what a renovation may be worth (both in terms of increases to rent and value). Look for similar properties that have renovated and see what they are selling for. You don’t want to overcapitalise, but it really depends on your local property market. Also look to see what renovated places rent for – and how much you might be able to increase the rent you charge (if at all).
With regards to tax depreciation schedules – speak to your accountant, but generally people do get them made before renovation to ascertain if there is asset value that can be written off as part of the works being done. You’d generally also get one made afterwards so that you can start depreciating your improvements. Ring your accountant and/or a good deprecation schedule service and ask them what they recommend. It also depends on the age of the property (pre 1985 or post) etc.
Best of luck!
PropertyBuyingGuideIf you’re thinking of landlord insurance – it’s definitely worth shopping around, and comparing the prices vs coverage level closely! We’ve found some companies to be really cheap only to find the coverage is limited. Have heard good feedback about Real Insurance and Allianz lately.
Let us know how you go with your search!
Regards
SydneypropertymanGreat to read these posts – completely agree that this is becoming an increasingly popular situation. Yes, it might depend on your specific circumstances, your rent vs mortgage costs, where you want to live vs where you can afford to buy, and how the tax benefits of the property vs your income will work – but definitely an option worth considering.
Sydneypropertyman
Hi Samsaralian
I would definitely recommend getting legal advice on that one!
There are various different ways of going about it (each buying the units as joint tenants or tenants in common, companies, trusts) – but each has major implications for tax and divestment simplicity. Either way, you would definitely want an agreement drawn up between your associates to ensure everyone is clear on their rights and obligations – particularly with regards to how to get out of the structure if things go bad!.
Good luck with it!
Regards
SydneypropertymanIf you’re still undecided – I’d also highly recommend Yardney’s “How to grow a multi-million dollar property portfolio” – I found it a great read.
Would also recommend the one from realestate.com.au, i've used them a couple of times now and they are always interesting!
I also find it good to do a google search of the address. Sometimes you find the search results show cached versions of websites that reveal the property has been listed for different prices over the last few months. Can be a good bargaining chip!
