Living in a short-term lease building

[ltk333]

Hi all,

The apartment below
http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2008138898

Seems *very* reasonably priced for a one bedder especially so close to the city and with a carpark.
The agent says its zoned for a short-term lease only (up to 3 months), but you could live there and no-one would know.

Could anyone advise the implications of doing so?
If there are none - it doesn't look like a bad investment - 430 a week for a $250k apartment :S

 

[marg4000]

Check the paperwork carefully. Often these buildings have a head lease that gives leasing rights over the entire building to a hotel chain. They want their commission so there is no way you could live there permanently.

Otherwise check with the council.

Remember the RE agent is a salesman. His job is to sell the unit. Check any advice he gives you, particularly when he seems to be suggesting that you breach by-laws by living permanently in a short-stay zoned building.
Marg

 

[travelbug]

So you are talking about renting it to a long term tenant? Risky if they are asked to move. Unless you get someone on a 3 month lease (may be difficult). I think you would find the rents are high BECAUSE it is short term rental.

Check the strata fees too. This may be prohibitive. With lifts and a pool costs can be higher. I know lots of blocks towards (and in) the city are very high. This can add $50+ a week to your outgoings.

 

[eastside]

short term lease issues

Be careful, short term lease buildings will always have problems with inconsiderate guests and wild parties. Think of overnight visitors, there for a weekend away, a night on the town. Do you, or do you want a tenant, to live under those conditions permanently? The only way to rent it out is to go short term yourself as well, because as an owner it can be very difficult to deal with the noise issues as these people are only there for one or a few nights. I know of this because a friend bought into the 'owner's floor of a high rise building that also has serviced apartment floors, and the disputes between the owner-occupiers and the hotel floor management are never ending.