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rockola57

Renting a Property out here in OZ,how complicated is it?

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Hi,

Was just wondering if anyone rents properties out here,and how does it all work,rules ,regulations,Tax,Insurances, The Laws,Safety etc.Would you recommend it as a long term investment?is it a lot of hassle?Me and Wife were thinking of doing this in a couple of years if we can,Renting out furnished to Newcomer Poms.Any Advice please,thanks.:biggrin:

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I've got a couple and just put in an offer on another one yesterday. Best advice I can give; get a good accountant and go through a rental agency, the hassle of doing it yourself is really not worthwhile.

 

I've considered renting out to immigrants too, the trouble is you will find it really hard to get insurance for short-term lets (most specify that tenants have to be signed up for 3 months minimum and having anyone on monthly lease will invalidate it), plus the logistics of getting someone from overseas lined up when it's available will likely be difficult.

 

Tax implications depend on your income, the age of the property and whether it's positive or negatively geared, aim to get something less than 10 years old if you're aiming to reduce your tax through the depreciation, and get a quantity surveyor in; $500 can potentially give you many, many thousands in depreciation return. With my places they're all negative to neutrally geared, and the depreciation brings them into +ve territory which means I do pay tax on the income, but it's better to have 60c in your pocket than to get 42c in rebate.

 

You will be liable for anything that makes the place unsafe, though your building report should pick things up like damage etc. If it's an older place get the wiring inspected, and get the most comprehensive insurance you can, I pay $1500 per year, per property as a guide.

 

Ultimately, you can loose money on property, so if you go for it be prepared to hang on for a long time - there's loads of threads here about how the bubble will burst, prices going down blah blah, but there's few places out there that's worth less than they were 10 years ago, and if you look around you can find bargains as people are scared of committing at the moment; the palce I offered on yesterday has been reduced $150k basically because the owner built a huge place for himself and desperately wants to be rid of it, so look around.


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Fine art landscape and portrait photography.  And occasionally fannying around with ultra-macro when I should be working.

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I've got a couple and just put in an offer on another one yesterday. Best advice I can give; get a good accountant and go through a rental agency, the hassle of doing it yourself is really not worthwhile.

 

I've considered renting out to immigrants too, the trouble is you will find it really hard to get insurance for short-term lets (most specify that tenants have to be signed up for 3 months minimum and having anyone on monthly lease will invalidate it), plus the logistics of getting someone from overseas lined up when it's available will likely be difficult.

 

Tax implications depend on your income, the age of the property and whether it's positive or negatively geared, aim to get something less than 10 years old if you're aiming to reduce your tax through the depreciation, and get a quantity surveyor in; $500 can potentially give you many, many thousands in depreciation return. With my places they're all negative to neutrally geared, and the depreciation brings them into +ve territory which means I do pay tax on the income, but it's better to have 60c in your pocket than to get 42c in rebate.

 

You will be liable for anything that makes the place unsafe, though your building report should pick things up like damage etc. If it's an older place get the wiring inspected, and get the most comprehensive insurance you can, I pay $1500 per year, per property as a guide.

 

Ultimately, you can loose money on property, so if you go for it be prepared to hang on for a long time - there's loads of threads here about how the bubble will burst, prices going down blah blah, but there's few places out there that's worth less than they were 10 years ago, and if you look around you can find bargains as people are scared of committing at the moment; the palce I offered on yesterday has been reduced $150k basically because the owner built a huge place for himself and desperately wants to be rid of it, so look around.

Thanks Eera,i really appreciate this info.A Great informative post.Best of Luck.:yes:

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Hi

 

can anyone give an idea of how long it would take to secure a long term rental after arriving in oz.

Once our visa is granted Myself and my husband are going to come over and then my mother in law is going to follow us with our little boy 2 weeks after ( which makes sense in one way but it going to be hard being without our little man for so long )

We were hoping we may be able to secure one in this time or is this being unrealistic!!! as I have never rented before only had a mortgage.

Any advice would be much appreciated

 

Thank you


Living our dream :biggrin:

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Guest shusselmann

Hi Mummy Mann,

Not sure where you're moving to but we moved to Sydney and found the rental property process fast moving i.e. property gets advertised and is then open for inspection a week or so before it's available. We looked at lots of properties where we could move in the next week. Given our experience I think you'd be able to secure something within 2 weeks.

There are several threads on here about the documentation you need to secure a rental property (references, proof of savings to cover the rent or proof of employment, proof of ID etc). Make sure you have a document pack ready to give to agents as soon as you find a property you like.

Good luck!

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Hi Mummy Mann,

Not sure where you're moving to but we moved to Sydney and found the rental property process fast moving i.e. property gets advertised and is then open for inspection a week or so before it's available. We looked at lots of properties where we could move in the next week. Given our experience I think you'd be able to secure something within 2 weeks.

There are several threads on here about the documentation you need to secure a rental property (references, proof of savings to cover the rent or proof of employment, proof of ID etc). Make sure you have a document pack ready to give to agents as soon as you find a property you like.

Good luck!

 

Thank you Shusselmann ;0)

 

We hopefully will be moving to the sunshine coast or gold coast area. We have two dogs that we will be bringing over too, so maybe that may make finding a rental a bit more difficult.

I have looked through tons of posts and they have said that if you offer a larger bond and or pay a few months rent up front that can help when securing a rental. And also to ask even if the advertised rental does not state pet friendly, they may except them.

The main thing we will struggle with is references as we have never rented before, we will just need to try and get as much info together to prove we are good and reliable financially ( have never missed a mortgage payment in 8 years ) so hopefully will be able to sort something out fairly soon after arriving

 

X


Living our dream :biggrin:

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In Queensland it's actually illegal for a landlord to ask for more than 4 weeks' rent as bond (if weekly rent is under $700, if it's over you can ask what you want). This includes ALL bond money, so they cannot ask for extra for pets, keys etc.

 

The landlord can say that they want rent paid on a weekly, monthly or whatever basis, so if they want 2 weeks at a time, and you want to pay monthly then agreeing to their terms is better.

 

If you don't have references be upfront, tell them you've had a mortgage and sometimes they'll give you a go as it shows at least you have a sense of reponsibility. However, you may not get the property of your dreams if you're up against people with a bona fide rental history. Settle for whatever you can get, once you've got 6 months behind you a whole new lot of opportunities will open up.


insta #tabradders
Fine art landscape and portrait photography.  And occasionally fannying around with ultra-macro when I should be working.

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Thanks Eera

 

I didn't realise that. So I can offer a higher bond etc but they can't ask for it.

I doubt we would be able to afford weekly rent of more than $400

We have had a few items on credit recently so I may ask if they can provide a letter also to confirm we are reliable payers

 

X


Living our dream :biggrin:

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They cannot accept anything higher even if you offer. if I had the RTA form in front of me I'd quote the section but can't see it at the moment. I wrote about it in a thread in the pets section asking about renting with dogs if you're really interested (legal jargon and all)


insta #tabradders
Fine art landscape and portrait photography.  And occasionally fannying around with ultra-macro when I should be working.

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They cannot accept anything higher even if you offer. if I had the RTA form in front of me I'd quote the section but can't see it at the moment. I wrote about it in a thread in the pets section asking about renting with dogs if you're really interested (legal jargon and all)

 

Thank you

 

I will have a look :0)


Living our dream :biggrin:

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