Airbnb 'cash-cow' story

Discussion in 'Airbnb & Short Term Letting' started by legallyblonde, 5th Jul, 2015.

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  1. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    With you on that. I want to open a dental practice / medical surgery to get the medical racket deregulated. Who says you need to be licensed, insured and meet minimum standards. Stuff that - I'm for cheap prices at any cost. Laws just aren't keeping pace with the demand for lower cost services.
     
    Paul@PAS, 8th Jul, 2015
    #21
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  2. jsoe000

    jsoe000 Well-Known Member

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    I sometimes wonder who owns my lifestyle and finances. Me or insurance companies? Sad.
     
    jsoe000, 9th Jul, 2015
    #22
  3. WestOz

    WestOz Well-Known Member

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    Whilst not Airbnb related, regarding other potential issues mentioned above.

    An IP I just picked up is contracted to a single middle age woman only, however another (her friend) with two children have also been living there for the past ~15mths.

    When I asked PM at handover of docs about it (I SM), "does she have someone else living there?"
    Ledger shows PCRs were done every 3mths (many other things they hadn't picked up on that I'm now working through)
     
    WestOz, 12th Jul, 2015
    #23
  4. thatbum

    thatbum Well-Known Member

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    This is probably legal though.
     
    thatbum, 12th Jul, 2015
    #24
  5. turk

    turk Well-Known Member

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    turk, 12th Jul, 2015
    #25
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  6. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    A lot of people do this in New York etc and go stay with friends for the weekend or week that they can secure an AirbnB booking. In areas where rent is high and they have friends/parents/boyfriend/girlfriend who can put them up for short stay bookings it can be very lucrative
     
    Westminster, 12th Jul, 2015
    #26
  7. wategos

    wategos Well-Known Member

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    They don't do this with real estate agents why would they do it with Airbnb ? I reckon most Airbnb rentals would never be reported and would be tax free.
     
    wategos, 12th Jul, 2015
    #27
  8. WestOz

    WestOz Well-Known Member

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    lol, I'll put it down to still being half asleep on first coffee when reading/replying, Sunday morn and all...
    Frustration with the Lic PM who was charging their now previous client to do FA with a result that now some major issue$ are potentially mine.
     
    WestOz, 12th Jul, 2015
    #28
  9. legallyblonde

    legallyblonde Well-Known Member

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    Haha! Great response =P
     
    legallyblonde, 12th Jul, 2015
    #29
  10. thatbum

    thatbum Well-Known Member

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    Nice.

    Recent WA decision pretty much went the other way. (Although on a slightly different issue)

    http://www5.austlii.edu.au/au/cases/wa/WASAT/2015/72.html
     
    thatbum, 12th Jul, 2015
    #30
  11. Excalibur1

    Excalibur1 Well-Known Member

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    I think that Airbnb provides the info to ATO. So you cant really hide....
     
    Excalibur1, 13th Jul, 2015
    #31
  12. Perp

    Perp Well-Known Member

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    They might be prone to tax avoidance, but that is not the same as tax-free!
     
    Perp, 13th Jul, 2015
    #32
  13. Gavin Ng

    Gavin Ng Well-Known Member

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    Short term lending might change the use and building classification. You've gone from a class 1 or 2 to a 1b or 3 (under BCA), the essential services for these building classifications are different.

    From a planning point of view - it's an intensification of use,

    From a BCA point of view - there is a change in classification which has different requirements for fire safety measures

    From a strata point of view - it may effect insurance for the building.

    Think one thing- fire, what happens if something happens and there's a fire. Strata (insurance) and council only think about these things and plus obviously there's an amenity thing. How would you like it if you lives next door to a place that had people with suitcases moving in and out every second day?

    Some councils have been enforcing airbnb issues, but this issue has yet to be ruled by the courts in NSW...there will be soon. Once a precedence has been set by the court we will know for sure.
     
    Gavin Ng, 16th Jul, 2015
    #33
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  14. Perthguy

    Perthguy Well-Known Member

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    IMO it is not valid to compare staying at someone's house and getting surgery. I could go to Sydney and stay with my mate but I wouldn't get my mate to do surgery on me ;)
     
    Perthguy, 16th Jul, 2015
    #34
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  15. Elives

    Elives Well-Known Member

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    how so with the cgt? your aloud to rent out your rooms in your ppor and it still stays your ppor as long as your living there.
     
    Elives, 19th Jul, 2015
    #35
  16. Mike A

    Mike A Well-Known Member

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    Where a dwelling is used to produce assessable income during your ownership period, you will not be entitled to a full main residence exemption. You would however be eligible for a partial exemption from CGT.
     
    Mike A, 20th Jul, 2015
    #36
  17. Elives

    Elives Well-Known Member

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    sounds a bit harsh, i know of at least 10 people / couples who have at one time or another rented out a room. and never been slugged that when they sold.
     
    Elives, 20th Jul, 2015
    #37
  18. Perp

    Perp Well-Known Member

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    I think rather than "never been slugged that", you meant to say "failed to declare". ;)
     
    Perp, 20th Jul, 2015
    #38
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  19. Mike A

    Mike A Well-Known Member

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    Yes not declaring something is different than being required to consider it.
     
    Mike A, 20th Jul, 2015
    #39
    Elives likes this.
  20. bernardblack

    bernardblack Active Member

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    I have heard a guy rented a inner city apartment in Sydney and rented it out as a service apartment to a corporate company without the owner knowing.
     
    bernardblack, 31st Oct, 2015
    #40
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