All Topics / General Property / At least I thought it was a good idea :S

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  • Profile photo of Rogue_SolRogue_Sol
    Member
    @rogue_sol
    Join Date: 2008
    Post Count: 1

    I am a 25 year old male, relatively new to property investing. I have owned my property for around 18 months, rented for approx 9 of those. Currently we are experiencing a few difficulties in receiving overdue rent owed and since the end of this particular tenants lease is almost up (Feb), we are potentially considering moving back into the property in order to straighten out our finances for a little while, but would obviously want to take advantage of any tax offsets or breaks that we can.

    Forgive my ignorance, but is it possible to 'rent out' a property to a family member, though have her offer us 'share accomodation' within the property, thus keeping it technically 'rented out' as an investment property, while the family member remains at another address or is the fact the we as landlords are residing in our alleged 'investment property' going to negate any advantages we might otherwise have received!! Whew…investing is confusing.

    Please help

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    As the property is in your name, you cannot technically sublease the property yourself (it extinguishes the lease). If the property is held by a trust or a company or any other entity, that entity can lease it to whoever it likes as the ownership is not the same person as the occupant.

    Profile photo of ducksterduckster
    Participant
    @duckster
    Join Date: 2004
    Post Count: 1,674

    If you didn't use a property manager it may be a cause of your nightmare. Keep about $2000 in your bank account so that you have a bit of a buffer in case a tenant gets behind. Also get Landlords insurance and have a lease to cover for lost rent or malicious damage.
    I had a tenant that was always behind in rent and it is frustrating but now I have a really good tenant that pays on time.

    Profile photo of LalibellaLalibella
    Participant
    @lalibella
    Join Date: 2007
    Post Count: 116

    Hi Sol, yeah sure you could but its called fraud and looked upon very poorly by the ATO as you would be fraudulently claiming interest on your "investment property" which you would not be entitled to.  No accountant would want anything to do with you at tax time.

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