Hi everyone
I’m looking at renting out my PPOR which is a two bedroom apartment in the UK during the next 12-15 months and would really like ANY thoughts on this… (thanks in advance!)
We recently had a water leak which damaged the carpet in the second bedroom (office) which we have claimed on insurance. However, this may seem insignificant, but my wife would like to put wooden floorboards (parquetry) while i was of the opinion that it would be better to have both bedrooms with the same flooring (carpet) for greater yield value.
Any thoughts?
[exhappy]
UK Man
UKman,
Assuming you are a resident of Australia for tax purposes you can negatively gear an overseas investment but only up to the total amount of interest payable. In ID2002/764 the ATO clearly states that, from 1st July, 2001 Section 160AFD allows the interest, borrowing costs etc. on an overseas rental property to be offset against Australian income to the extent that it exceeds the overseas rent received. For example if all expenses other than interest result in a profit on the property of $1,000 but the interest is $9,000 you are entitled to reduce your Australian taxable income by $8,000, If on the other hand the property runs at a $1,000 loss before interest and the interest is $9,000 you are only entitled to offset $9,000 against your Australian income.
The calculation the loss on the rental property is in accordance with Australian tax law. Therefore it is relevant in your considerations how carpet vs timber floors are treated for tax purposes. The cost of the carpet must be depreciated over 10 years whereas restoring the floor boards is imediately deductible as a repair according to ID 2002/330
On my web site http://www.bantacs.com.au there is a booklet called overseas that may interest you.Julia Hartman
[email protected]Maybe this is just me being me, but I don’t think I would ever put timber floorboards in my bedroom/s – nor would I want to rent a house that had timber bedroom floors – I know someone that has got them and they are terrible. The rest of the house is fantastic.
Living areas – timber.
Bedrooms – carpet.I know you were focussing on yields but please excuse my very simple response.
Age doesn’t negate effort – you can never be too young or too old.
Thanks Spanky – just the type of responses i’m after. Looking for tips of anyone who has experience with IPs (which i don’t as yet) to guide me on this one… seems simple, but just don’t want to make a mistake.
Cheers
UK Man
Having lived in Uk for a bit, I would definitely recommend carpet in the bedroom. I certainly wouldn’t want cold floorboards during winter! You want nice carpet for your tootsies…
At the opposite end of the scale here in Aus, it was cheaper for us to polish up existing floorboards than to buy even crappy carpet.
Hope it helps.
StephSuccess is 1% inspiration and 99% perspiration.
The thing with floorboards in units is that if you are up top in can upset your neighbours below as they can be very noisy when you walk on them. You’d want to get a really top quality underlay if you were going to go with floorboards methinks.
Thanks,
LuckyoneOriginally posted by Scremin:Having lived in Uk for a bit, I would definitely recommend carpet in the bedroom. I certainly wouldn’t want cold floorboards during winter!
Agreed.. it can get very cold and you’d definitely want carpet to keep your tenants warm and so they can save on heating bills. I’d go hard flooring for all the living areas and carpet for the bedrooms.. the traffic in bedrooms is usually pretty low in most cases so you won’t have to worry too much about the carpets getting worn or dirtied.
Hi,
the property manager I am with recently conducted some research and discovered tenants were more interested in polished floor boards rather than carpet. At issue — the carpet is harder to keep clean.On the other hand, floor boards can be slippery (on socks) and could cause an accident. So insurance needs to be kept up to date.[blink]
I agree with other members of the forum regarding cold winters in UK and tenants would probably prefer carpeting. Stick with the norm?
Regards,
HelenAll the responses dealing with the practicalities of carpets versus wood are very valid. We all tend to think with our hearts somewhat when it comes to renting out our homes.
Think with your head! What is the cheapest item to install? Versus If parquetry floor is laid, will this attract more rent for the property?
We went through a similiar decision a couple of years ago when wooden floor boards re-surfaced (no pun intended) as the in-thing. Our decision was based on rental return at the end of the day.We went with carpet that was hard wearing and easy to clean.
cheers[biggrin]
I live in a hot climate so decided to put floor boards in all three of the bedrooms of my IP. The carpet had had it’s day and vinal floorboards where less expensive to replace then with carpet, also they have a 10 year warrantee. They look great!
In the Uk, um for sure carpet!
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