Hi everyone,
My partner and I are just about to become first time investors. The home we currently live in will become our investment property and we'll move into the new one.
Does anyone have any ideas or experience on what its like to rent to friends? I can see good and bad points to it, the best thing is i know who'll be in my house and may be allowed to work on the property with them in it. Bad side is they may not be as strict about paying on time since i'm a mate…..
The property will be -ve geared, am i best to go through an agent or draw up a lease and manage it myself? I know I'll lose any deductions i would've paid as agents fees (about $20/week) but i'll get more in my pocket because there'll be no agent……….
Any help or advice would be gladly appreciated,
Cheers,
Grant N
Hi Grant
Wont give you a lecturer on the wisdom of renting to friends but make sure you do it properly with a lease agreement and market rent. Personally if you are going down that path I would employ the services of a property manager as for a small monthly amount you dont have to be the one to chase your friend if payments fall behind.
Secondly make sure your mortgage broker structures your loan correctly as you need to make sure you maximise your deductions as well as preserve the flexibility of the loan to enable you to move forward. Where possible make sure the loans are not cross collateralised.
Richard Taylor | Australia's leading private lender
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