Hi all,
Reading through this article in “money” magazine:
http://tinypic.com/r/30t58iq/9
And I just can’t get my head around it.
How can one use the rumpus room downstairs (for example) as a second source of income WITHOUT setting it up as dual residency (which requires council approval)? Or is the magazine hinting at performing illegal actions?
This is only semi theoretical question. Got a new IP in sight, it’s set up as dual residency but without council approval. Small lot so council won’t provide such consent even if you ask them. The return is really sweet but who wants to buy and hold a property that could come back and bite you in the arse? (council inspection, some claim from a tenant etc).
Am considering to rent it as 1 dwelling and turn a blind eye if the tenant sub-leases the downstairs unit but not sure if that’s smart either.
Looking forward to your thoughts, ladies and gentlemen :-)
Cheers,
EthanEthan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
This may be a better link:
http://oi68.tinypic.com/30t58iq.jpgEthan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
This type of property is not uncommon in QLD.
The way they use this now is that they cater to large families or family that live together with their extended family. A bit hard to find them though.If it is of legal height downstairs, you can get tenants on a separate lease.
If it is not, they sometimes have one on a lease and the other on a short term contract.I would not risk doing that If I were you due to the reasons you have highlighted as well as potential insurance issues.
One of my property in QLD is prepped up for dual occupancy, legal height downstairs with a kitchenette and toilet. Good thing I bought it with the tenants in place and has been living there for a while. Large family but they only use the downstairs as their entertainment area.
Jerry | Mortgage Station
http://mortgagestation.com.au/
Email Me | Phone MeFinance Strategist - Active Investor - Serving clients Australia-wide - Based in Sydney / Melbourne
Thanks, Jerry.
I’m still at a loss on how the magazine suggests a “double up” (2 revenue streams) without needing a council approval.
Having one large family with a teenage/grandma retreat downstairs is one way to go, but it’s still one revenue stream, not two. Turning a blind eye to subletting(/airbnb) is also only one revenue stream (from the owner’s point of view).
Strange.
Am starting to think the writer simply messed up :-)
Ethan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
Ethan
I think you can have 2 families in the property, however they must be on one lease if its not legally approved granny flat.
Also can be an issue with insurance.I really don’t like this set up at all, its harder to rent these out, so what may appear as cash flow on paper becomes a negatively geared property.
I had a dual occ property in QLD and sold it after 12 months, as the above happened, yet in Sydney there are many illegal g/flats in particular western Suburbs, I owned one and always rented out and no issues. Unfortunately different demographics in QLD, lesson learnt wont go down this road again in QLD…. enough of a rant now:)
Marisa
MTRThanks, Marisa! Good points and thanks for sharing from your experience. It was definitely not a rant 😂👍😎 cheers!
Ethan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
You must be logged in to reply to this topic. If you don't have an account, you can register here.
