Home owner to Investment Property

[vmmg1992]

Hi All,

What is the process of converting your home into an investment property?

My understanding is you call up the bank to change the loan to an investment/interest only loan.. i think?

You acquire a property manager and purchase land owner insurance

You change all your bills so that it is delivered to the tenant instead

... and that is where i'm stuck, am i missing something?

 

[Lawry]

don't forget to acquire a tenant

Regarding loans, its your choice if you keep them P&I or IO, according to your strategy, either way you can only claim the interest portion of your repayments as a deduction against tax. Speaking of strategy, that's probably a step back worth taking before you go ahead, so that you can set things up in the best way

 

[vmmg1992]

Is that all I have to do? it sounds way too easy..

 

[Propertunity]

....
You change all your bills so that it is delivered to the tenant instead ...

Somehow I don't think the tenant will be interested in paying your bills

 

[vmmg1992]

Somehow I don't think the tenant will be interested in paying your bills

hahahahha I will list it as a requirement

Currently my name is under the electricity bill and gas bill, once the tenant moves in don't they have to pay for their usage?

 

[Propertunity]

hahahahha I will list it as a requirement

Currently my name is under the electricity bill and gas bill, once the tenant moves in don't they have to pay for their usage?

Yes, you just get the final bill from the utilities companies when you move out. What happens next is up to the incoming tenant

Insurance-wise, you'll need house & contents + landlord insurance.

 

[perthguy]

Yes, you just get the final bill from the utilities companies when you move out. What happens next is up to the incoming tenant

Insurance-wise, you'll need house & contents + landlord insurance.

Contents for a tenant? I get building insurance for an IP, not home and contents.

 

[Singo]

It depends on whether the property is furnished by landlord, I reckon.

 

[perthguy]

It depends on whether the property is furnished by landlord, I reckon.

True. I was thinking of unfurnished.

 

[Jacaranda]

Also get a depreciation schedule done so you can claim depreciation - I use and highly recommend Scott Brunsdon at Depreciator - www.depreciator.com.au phone 1300 66 00 33