I am planning on doing some cheap renovations (extra doors, walls, rewiring & security) to let out 2 rooms for students in my PPOR. The goal would be to save enough to do a larger renovation of the laundry into an extra bathroom and have another detached rental dwelling.
Do I need to be doing a property valuation and/or getting in a quantity surveyer for tax purposes?
I will be doing this in a bit of hurry to get started and I don't won't to find out later that there were important things I needed to do first.
Can anyone suggest books/websites that could help me skill up in this area?I have an off-the-plan investment flat under construction in Sydney and eventually want to be able to live between the two places.
you will be losing your CGT exemption on the portion of the property rented out. A few dollars saved in tax now could cost you thousands down the track.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Can't you treat it as a private arrangment whereby the students are paying you board to contribute towards living expenses such as bills, food, ect? That way it's unlikely to be treated as income. I'm not an accountant but I'd assume that this kind of arrangement is not uncommon.
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Is it worth paying for a QS if my unit is older than 1985 but the internal has all been renovated? Its a 2 bdroom unit and I need to arrange it ASAP as I have a tenant moving in in 2 weeks time. I dont mind forking out the funds for a QS report if it will be worth it for my tax.
Cheers,
Jacqui
I would say so.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Jacqui,
If you need something quickly, I use a company where you fill out their online form and attach photos – from that info, they email you the depreciation schedule. Some argue that with this method certain depreciable items may go undetected (because a QS doesn't physically inspect the property). I can email you a discount voucher if it helps.
Cheers,
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Jamie,
What is the companies name? I can look into it.
If you can email the disc voucher that would be great.
Appreciate you offering.
Jacqui
Okay, back to letting out rooms for students . . . it sounds like the real issue is whether to declare it as income or treat it as a 'share accomodation' private arrangement.
If I do then I will lose on:
CGT
declaring income to centrelinkBUT it means I can get:
a tenancy agreement
tax deductions on a percentage of all building maintenance, rates, utilities, cleaning etc
depreciation
honesty to govt deptsCGT is an important issue but I would be hoping to hold the property for as long as possible to build a portfolio.
I'm not sure how declaring/not declaring affects my home insurance policy. Would I lose out on a claim if they discovered I was renting without declaring this?Does anyone have advice on the pros and cons of declaring rental income?
cheers
mdjacqui_03 wrote:Hi Jamie,What is the companies name? I can look into it.
If you can email the disc voucher that would be great.
Appreciate you offering.
Jacqui
The company is Corpred – I've found them to be very good and affordable. Email sent.
Cheers,
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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