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Sere

Buy house as an investiment and rent it later

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Hello

my Husband and I are thinking to put a deposit for a house/apartment as an investiment and put someone else to live in to repay the mortgage 

we are completely new of this topic and I would like to have feedback from people that have done something like that 

the rent actually repay the mortgage?

it is hard to find someone to live inside the house?it happened that stay for long time empty?

we are Italian and back home the rules are all different from here 

so all the feedback are more than welcomed 

we live in Sydney but we are thinking to invest in Melbourne or gold cost/surfer paradise 

any feedback?thanks 

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Did you read the links you were given to your similar query on Sunday?   The many factors to be considered are listed in those links.  

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We did this, had planned to live in the house a little longer, but for various reasons it didn't work out and we're now back in the UK with an Aussie rental property. The rent minus all the various fees doesn't cover the mortgage, plus there is water and council rates on top of that and any maintenance that crops up. You do get tax back at tax time, but we are not sure what as of yet and what it will cover of our expenses. Our property was only empty for a few days between us leaving and the tenant moving in, but depending on where they are and the condition of the property they can sit empty for months. I good agent is a must. 

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A quick answer to the OPs questions

  1. Unlike UK, most rentals do not cover the mortgage plus agent plus landlord costs unless you put a really big deposit and have a small mortgage (less than 60%). Value in the market here is the land appreciating over time and making use of negative gearing in the initial years to offset your income tax
  2. Need to chose the right spot with amenities close by to ensure continuous rentals. There are so many houses on the market in every suburb. A quick look on realestate.com will give you a good idea
  3. Unless you are experts and know the Aussie market as well as city trends, its a big risk for your first investment to be in a place you hardly know about

 

Best of luck

KnK

  • Like 1

Karen & Ken | PRs done : Jun 16 | Moved to Aus : Dec 16 | Break from Life : Dec 16 to Feb 17 | Mel Rental, Jobs and City Life : Feb 17 | Mel Land Purchase : May 17 | Home Construction : Sept 17 | (Bye bye city and hello suburbia) Moved in : Aug 18 | and on to the next............

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On 10/10/2019 at 02:57, Sere said:

Hello

my Husband and I are thinking to put a deposit for a house/apartment as an investiment and put someone else to live in to repay the mortgage 

we are completely new of this topic and I would like to have feedback from people that have done something like that 

the rent actually repay the mortgage?

it is hard to find someone to live inside the house?it happened that stay for long time empty?

we are Italian and back home the rules are all different from here 

so all the feedback are more than welcomed 

we live in Sydney but we are thinking to invest in Melbourne or gold cost/surfer paradise 

any feedback?thanks 

It is very common in Australia, and there are many advantages. I believe Marisa is very experienced with the pros and cons. Hopefully she will be along soon.

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