We currently live in a 3 x 1 in Victoria Park. It’s a duplex block. We’ve been told it will take up to 12 months to subdivide. During this time we would like to get the house ready for renting as we know it will attract a positive cash flow. We will add an ensuite and really tidy up with a cosmetic renovation. My question is when do we do the reno’s? If we are living in the house we have the time to tidy the house up, but we obviously can’t claim any of the costs. Should we perhaps do the reno’s while the house is vacant, after we have moved out and before we lease it?
Any suggestions would be greatly appreciated.
Kind regards! :o)
Where is Victoria Park?
I would suggest that the best time to reno is about before you have the tenants move in.
You still wont be able to claim any deductions as this is before the place is earning an income. Your place needs to be earning an income to claim against before you can claim. See you accountant- you will need one who knows about property investing- not many do- I can suggest one if you need. After that- maybe rent out the place , then do your reno about when your subdivision is almost built.
Just in case there is any damage to the house.
You can do your renos while you live there- Oh!
I just thought- consider your Capital Gains- see an accountant and run through figures- if it is your PPOR – then the reno at that time may be worth it- no CG as a PPOR.
Then you are subdividing the block- whole new ball game- again talk to an accountant who knows property- get them to run through some figures for you.You could spend your time planning, getting tradies in to quote and measure and so forth. Then a couple of months before you are ready to move out you tell your cabinetmaker to start making your kitchen, book tilers etc in, and tell all your providers you dpn’t want any invoices till after you move out
Jacqui Middleton | Middleton Buyers Advocates
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What I did was reno while no one in house but had it advertised for rental with a future date for start of lease (ie when you think renovation will be finished)
It can take some time to get a tenant depending on time of Year
And write into the lease that an en suite will be installed in whatever room it was ( tenants do not believe it will happen otherwise)Also consider built in wardrobes if you do not have them.
Check with your accountant –
the renovation may be considered to be an improvement and would have to depreciated.
A quantity surveyor could be a good source of depreciation advice on your renovation!!!!!!! keep receipts !!!!!!
on renovation costs
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