My uncle was selling his 2000 model Magna the other week and was only looking at $1,200 for it. It was a base model in excellent condition. This got me thinking… How good would it be if you owned an investment property in an area near a university (Rockhampton, St Lucia or Toowong in Brisbane etc.) and included a car as part of the rent. You could say charge $40 per week more for the rent to include the car which will cover the costs of itself in about a year (including rego and insurance). Who cares if they put the odd dent in the car, you are making profit after the first year.
I have only just started thinking about this so there may be a few legal implications and my figures may be a bit all over the shop but it is just an idea at the moment.
Cheers,
ooohh… dangerous ground here… public liability…. commercial car rental insurance rates….. etc etc.
Yes, please check your public liability insurance you might find they do not cover you if you provide a car to the tenants.
You going to maintain it for the students too?
What about the tickets that come to the owner? Who are you going to send them onto?
I reckon you are going to make life difficult for yourself. You are in the business of IPs not car rental!
Good luck!
Hey Guys,
Thanks for your comments.. Thinking about what you are saying and this will cause too many headaches; I was more brainstorming than offering a hard and fast solution. I thought it was a good idea at the time though!
Mortgage Hunter, didn't you know that Mitsubishi's don't break down? :o)
I say good on you for thinking outside the norm!
If there's a few issues, how could they be worked out – you give them the car to own rather than retain ownership? after all they are paying extra as in your example. in a 12 month lease you'd have it taken care of and then a bit of profit.
otherwise a pushbike, include a helmet if you want!
there are other ways of getting around other than a car, and uni students want something pretty cheap to run and operate.
inner city location you could include a scooter. my advice would be to ask them what they want as everyone is different and it'll be a win-win situation.keep up the good ideas!
CanberraClaire | Capital Buyers Agency
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wow that was a close one, another forum save.
Providing a tenant with a car, you might want to save your biggest cardboard box, thats where you'd end up living.
Thats a good idea, but it could pulll in lots of legal complications. See what are your rights before you do that. Investing is such a way is really new idea.
Opportunity In Everything wrote:Providing a tenant with a car, you might want to save your biggest cardboard box, thats where you'd end up living.LOL.
I had a similar thought previously too so good on you for asking!
Hello Dannads
I think its a great idea. I think a good way to do it is to vendor finance the car to them. So you give them the car, it goes in there name, and you provide the finance for it. That way there is no legal issues, such as public liability, fines etc. Then you charge the tenant $40 as a loan payment and they pay the car off with you.
There is always a way.
Tim Hart
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