Hi all, This is my first post, so I hope it's in the right forum. I am currently looking at purchasing a share house IP (Class 1b Property in Brisbane) which is essentially 5x studio apartments, each self contained with kitchenette and ensuite. It has a common area for main kitchen, living and laundry. It's only about 10 months old. It has "long term tenants." I've been trawling through the forums, but can't see much on this type of property. There are references to ATO rulings on "Short Term accommodation" although we wouldn't have a manager on site, and we wouldn't be providing room keeping or meal services. We are looking at individual leases of 6+ months for each tenant. As it is a residential zoning, I believe we always need less than 6 non-related people at any time. I am also aware that an annual fire safety review needs to be conducted. Is there anything I need to look out for in terms of tax claiming or ongoing commitments to the property? TIA.
I thought it was 5 parties max? I have a 1b property and it's 5. But maybe there be exceptions that I'm unaware of. Anyway if you want good legal advice for this type of thing reach out to @RPI - his company deals with this sort of thing all the time (company is called Certus Legal).
Thanks mate, Thanks for the recommendation of RPI - I've seen him recommended for NDIS properties too. You are right, I've looked it up and it's only 5 people, I can't say where I got 6 people from. Who is providing you with finance, if any? Did you have many issues in that regard? I have been told I will need a commercial loan with higher rates. I assume you are in Brisbane too?
I'm in Sydney but my 1b property is in BCC. I have a residential investors loan on it. It started off as a regular property then I hired Certus Legal to change it to 1b for me. It took some minor work to the house...probably like 5k all up. Can't remember the exact amount. Anyway the law that allowed me to do the change to 1b doesn't exist anymore unfortunately. RPI did it for me just before they closed the loophole.
Btw even though I paid $10k in legal fees and like another $5k in expenses...I've never even used it as a 1b property lol. It's just been rented out normally. I only did it because the loop hole was closing and I wanted to get it before the chance disappeared completely. However one day when I have enough time to manage tenants I may look to leverage the 1b status. There is money to be made there that's for sure.
Haha I reckon get an agent and make it rain once your existing tenants move on anyway. Its looks to be soo good re cashflow.
