Airbnb and banks

Discussion in 'Airbnb & Short Term Letting' started by jodes, 18th Aug, 2017.

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  1. Ouchmyknees

    Ouchmyknees Well-Known Member

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    I've seen people registered a company, lease the airbnb to the company and then let the company manage the airbnb. Not very sure if this is legal at all?
    There will be tax implications as well.
     
    Ouchmyknees, 28th Aug, 2017
    #21
  2. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Different tax rates could be an advantage or disadvantage depending on how you structure it.

    The problem is your credit report shows you're a director of the company that is leasing your property. If the assessor is awake they'll spot this and the rent won't be seen as 'arms length'.
     
    Peter_Tersteeg, 28th Aug, 2017
    #22
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  3. Teri

    Teri New Member

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    The banks do not accept AirBnB income. No. I hosted successfully and consistently, for more than three years and no bank would look at it as income. Uber, however, is a whole other story.......
     
    Teri, 27th Nov, 2017
    #23
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Sublease to a company which then conducts a business.
     
    Terry_w, 27th Nov, 2017
    #24
  5. Gockie

    Gockie Life is good ☺️ Premium Member

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    Good strategy.
     
    Gockie, 27th Nov, 2017
    #25
  6. Lifeinonemotion

    Lifeinonemotion Member

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    Two years tax returns with some lenders is definitely still a thing - can be shaded more than standard 80% for perceived risk/higher expenses. 6 months isn't seen as regular or consistent enough in own right, - given peak and offpeak seasons... (eg a beach house theoretically get more over summer than winter etc...)- but depending on how much is needed get your deal over the line, and depending on lender - I'd put some feelers out after it shows on 1 years tax return and a solid case for it (ie standard appraisal)...but two years is would be the standard to a lender that does accept it.
     
    Lifeinonemotion, 27th Nov, 2017
    #26
  7. Teri

    Teri New Member

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    Terry W? I am Teri W. This is a sign hahahaha. Thank you.
     
    Teri, 27th Nov, 2017
    #27
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  8. jodes

    jodes Well-Known Member

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    Well we've decided to take our properties of airbnb and list them traditionally so we can try and release our equity. I haven't yet pulled the trigger becuase it drives me crazy that we are going to essentially be halfing our income from these properties and before the bank said no and now they are likely to say yes ...
     
    jodes, 2nd Feb, 2018
    #28
  9. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    This is where cloaking income can be useful. With lo doc facilities

    Ta

    Rolf
     
    Rolf Latham, 2nd Feb, 2018
    #29
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  10. jodes

    jodes Well-Known Member

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    Can you provide more details on what cloaking income is? In our instance it wouldn't work as we are releasing equity but interested to find out more regardless.
     
    jodes, 2nd Feb, 2018
    #30
  11. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    One method is to use a low doc product where you can simply declare your taxable income.

    depending on your circumstances there may be other methods, but obviously we know little about your circumstances.

    your broker or banker may be able to talk you through it

    ta
    rolf
     
    Rolf Latham, 2nd Feb, 2018
    #31
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  12. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    It would only need to be for a short time - but if you get tenants i guess you have to wait till their lease is up.
     
    Terry_w, 2nd Feb, 2018
    #32
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