Forums / Property Investing / Creative Investing / Spare cash for spare rooms

2019 Money Magnet Symposium - Discover how to make, and keep, more money and achieve a financially empowered future
Viewing 10 posts - 1 through 10 (of 10 total)
  • Profile photo of BromanBroman
    Participant
    @broman
    Join Date: 2012
    Post Count: 5
    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    Watch out for the CGT implications.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of BromanBroman
    Participant
    @broman
    Join Date: 2012
    Post Count: 5

    I am also wondering, any comment?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    Well, if you are renting out a room of the main residence you will lose the CGT exemption status for that portion of the house – for the period it is rented out.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of BromanBroman
    Participant
    @broman
    Join Date: 2012
    Post Count: 5

    But I don’t think it lost exemption if I rent it out for just days when I am not in the city.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    If you are absent from your main residence then you may be able to claim the exemption still (in some cases), but not if you are living in the property at the same time as renting rooms.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of BromanBroman
    Participant
    @broman
    Join Date: 2012
    Post Count: 5

    thanks Terry, I think I will list my place on those website and just open for rental when I am not in the city

    Profile photo of ChrissstChrissst
    Participant
    @chrissst
    Join Date: 2012
    Post Count: 5

    Hi Broman,

    Have you tried? How is that?

    Thanks,

    Profile photo of renelrenel
    Member
    @renel
    Join Date: 2012
    Post Count: 40

    A bit off track – We are just getting our spare room ready to become hosts to students and asylum seekers. Each placement is for 4 to 6 weeks. Its not renting out the room as such, more of a boarding situation. The money you receive is to cover the extra bills etc, so its not a profit making thing. I keep seeing on tv all the people living in 'tent cities' around oz and am wondering why the two ideas can't be meshed. That is, renting out a spare room for people that would otherwise be living in tents, on a temporary basis ( 1 to 3 months?) unitl they got on their feet. From what I understand they are paying some serious cash to be able to pitch a tent on some grass in the middle of winter. I am trying to find out if an organisation already assists with this….

    Profile photo of M.InvestigatorM.Investigator
    Member
    @m.investigator
    Join Date: 2012
    Post Count: 134

    This is a very promising business prospect. $3,000- 4,000/month for short term rentals compared to $700-S1,000/month long term rentals. Not  a bad idea. What a relief to pay off the mortgage! Best is to place adverts on websites.

Viewing 10 posts - 1 through 10 (of 10 total)

You must be logged in to reply to this topic.