I would like to buy a property in sydney that myself and other family members can stay in on occasion. does anyone know if there are any complications if I buy a two bedroom place and rent out the other room while keeping one for occasional use?
Also, if I buy a place and then buy the furniture to rent it out as a fully furnished apartment, is the furniture tax deductible?
You could do that. Claim half the costs or based on floor area. Part of the furniture may be depreciated too.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I imagine the tenancy agreement will be rather complicated.
Most of the logistics should be fairly easy with regards to depreciation etc. I imagine the hardest part would be finding the right tenants for that other room.
My brother has just gone through hell with some shared tenants he had in a place in Sydney in similar circumstances. Everything was great, until it wasn't. His problem was that he only had a handshake agreement with the person (he's learnt now) and because of that they completely screwed him over (even after being friends).
Lucky NSW people
In the majority of Council areas in Qld that would be termed a Multiunit dwelling, regardless of the built form. In a unit you would probably be ok, in a house Enforcement Notices, lawyers and town planners will become your friends. Messy and expensive stuff that kills your rental return.
RPI | Certus Legal Group / PRO Town Planners
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Hi guys
I know with my insurance policy with terri shceer that if the property is for 'investment purposes' then you will invalidate the policy by staying on the premises. so be aware of what your insurance policy stipulates – fine print.
hope this helps
i would also suggest that if you were to fully or partly furnish the property, any issues with breakdowns in items or repairs are something you as the landlord would need to fix. eg. say the fridge breaks down you would need to pay for cost of repairs being the landlord should you 'provide the fridge' as part of the furnished apartment. that means if you dont live in Syd you could get the property manager to manage the property or if you self manage, you would need to arrange the repair of the fridge. Just be aware that anything provided to the tenant needs to be repaired during their tenancy.
I would think that it would be cheaper and more cost effective to rent a hotel whilst you are in SYd and treat the property as solely investment or solely residential. Remember to establish the reason for purchaser 'BEFORE' you purchase the property. This makes things a lot easier. It would be a slightly different scenario if you were to live there and rent the other room out to a mate or another person. Whether a mate or another, always ensure you have a tenancy agreement in place and go down the correct paths. look at consumer affairs website for all forms for self management.
Yes, you can do this and there would not be any problem in doing so, only the toughest part to do this is to find the good tenant.
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