Hi,
Does anyone know the possibility of turning a brand new property into a 1/2 investment property? My first property will be coming very soon and I plan to stay in for 6 months to get the 1st home owner grant. However, I am having trouble deciding what to do after 6 months. I don’t really want to move out since I will need to rent somewhere else again. It would be good if I can rent out half of my property and claim the tax depreciation on it. Is it possible to do 50/50 or do I have to rent out the whole apartment in order to treat it as an investment property?
Hi Asou,
Welcome here !! I’m glad you decided to join us to ask your question. Why? Because there is SO MUCH you need to consider ahead of a decision like this, and you are in the right place to get some good pointers through the maze.I haven’t done what you are thinking of doing, but I have heard enough from others to know that there are roadblocks that need to be negotiated and the final result may be way less than you expect.
In the meantime though, do take a look at this thread :-
https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/That thread has a number of links within it, providing answers to many questions. One of these is “Is it better to buy my own home first, or an Investment Property”? That one may give you a better perspective re your thought of “I will need to rent somewhere else”. You see, it may be more advantageous than you think to do just that.
Anyway, great question, and lots to think about. Let’s see what thoughts others come up with, especially in relation to your direct question (doing a “half-rent” of your apartment).
Bennyhi Benny,
Thank you so much for the replied! I have asked so many people around me but none of them seem to know the answer. I am glad I signed up to this forum which I found it amazing. There is a lot for me to learn in property investing and this forum seems to be a great place to start for me.
Hi Asou,
I have asked so many people around me but none of them seem to know the answer
Yeah, it is one of those questions that many of us don’t spend our lives thinking about. Based on figures I hear, less than 10% of people ever buy an Investment Property of any kind. And then, (like me), many investors don’t know all there is to know about every aspect of investing.
BUT, get all of the Investors in one place discussing property investing, and the combined information on tap is enormous !!
I am sure someone on here will :-
1. Have already done that, and can share what works and what doesn’t,OR
2. Will have the knowledge about WHY this may not be a good way to go, and can tell you what to watch out for, or avoid, or expect, if you choose to go ahead with that plan.
And therefore, I agree with you – “There is a lot for me to learn in property investing and this forum seems to be a great place to start for me”.
Benny
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