Moving out of PPOR, back to renting.
- Thread starter Richard Feynman
- Start date
Definitely a good idea –*I'll be back to note what I've included in the spreadsheets and ask what I've overlooked/got wrong.
sanj, yes. The remainder of a 15 year fixed. A lesson learned... and evidence in support of the benefits of asking questions of many people before making financial decisions.
I would get your place up and ready for renting. Find a place you want to rent and organise the move.
Then, with about three to four weeks before you make your move to the rented place, get your place with an agency and on the net to find a tenant.
Move once. Don't complicate it. If you have a week empty, that is still cheaper than pfaffing about with a double move.
Then, with about three to four weeks before you make your move to the rented place, get your place with an agency and on the net to find a tenant.
Move once. Don't complicate it. If you have a week empty, that is still cheaper than pfaffing about with a double move.
And a negative in terms of finding a place yourself. Given the tight vacancy rate, I'd find somewhere to rent before placing your place on the rental market. How long it takes you find a place will depend on how fussy you are, but if you do it this way then you've got time up your sleeve.
With that sort of vacancy rate, as long as you price your place well you should rent it in no more than a couple of weeks.
What do you call long term? A year? Because as a tenant that's the most you are likely to get. As a tenant you're always at the mercy of the LL wanting you out for whatever reason.
write a cover letter to your application. I know it sounds like bs but we have secured some nice rentals by actually talking to the PM, explaining who we are and providing a cover letter/blurb for the owner as it helps the agent 'sell' us as tenatnts.
If you are returning after owning even offering to show some type of proof (e.g. title with parts blacked out), i have never had to 'prove' any of the things we have offered but i feel they have had impact.
If you are returning after owning even offering to show some type of proof (e.g. title with parts blacked out), i have never had to 'prove' any of the things we have offered but i feel they have had impact.
Cheers all for the input on approaching the listing of my place/tming it/making the move etc.
I rented the same place for 5 years prior to purchasing my PPOR.. that should count for something right?
Ideally I'd want to find a minimum 12 month lease but much better (and a hell of a lot less likely) would be something longer. Moving is a costly pain in the **** so the longer I can lock in the better. I suppose as a tenant in a tight market I'll have zero bargaining power in terms of getting a longer lease..
I wouldn't have considered this. Great suggestion.
I rented the same place for 5 years prior to purchasing my PPOR.. that should count for something right?
Ideally I'd want to find a minimum 12 month lease but much better (and a hell of a lot less likely) would be something longer. Moving is a costly pain in the **** so the longer I can lock in the better. I suppose as a tenant in a tight market I'll have zero bargaining power in terms of getting a longer lease..
I wouldn't have considered this. Great suggestion.
It does, but do you still have any record of your payment history after 8 years?
As I can assure you the agency you rented with is highly unlikely to have any records of your tenancy now.
I do have bank records going back quite as way but it's only ~2 years ago that my tenancy finished up there. What's the minimum amount of time REAs must keep records?
To me, anyway, no. Every new renter gets a 6 month lease.
Sorry, I was referring to simply obtaining a lease, not negotiation a longer term. 6 months is probably a wise strategy to avoid longterm problem tenants so fair enough.
I checked a few 3-4 bed places out on the weekend, all with 12 months leases so at the very least I should be able to find something for that long.
As in, the current tenant is on a 12 month lease? Or you will be offered a 12 month lease if you decide to rent it?
The latter. I made a point of asking about this just to test the waters.
At two years they will still have your records, Vic is 7 years for most tenancy records.
Thanks Skater. I'll make a request for the records.
It does feel good culling, I purged heaps when I transitioned from rental to my PPOR (which was also necessary given the reduction in sqm). Since then I've acquired little and parted with plenty so there's not much fat left to trim.
It does feel good culling, I purged heaps when I transitioned from rental to my PPOR (which was also necessary given the reduction in sqm). Since then I've acquired little and parted with plenty so there's not much fat left to trim.
One thing I forgot to mention is breaking my loan as soon as I move out so it's considered a loss on an investment. This was mentioned to me on this forum.
If I break, I'm going to cop a $40k fee.. which I can depreciate over the next few years to help with cashflow. What's the formula for working this out exactly? I am considering either breaking the full loan, or splitting and breaking a portion of it.
I know it'll be a hit initially, but it will help with cashflow, and allow me to park funds in an offest account and most importantly, as my cashflow increases, I can pay down the loan much quicker than $10k a year extra which I'm already managing.
If I break, I'm going to cop a $40k fee.. which I can depreciate over the next few years to help with cashflow. What's the formula for working this out exactly? I am considering either breaking the full loan, or splitting and breaking a portion of it.
I know it'll be a hit initially, but it will help with cashflow, and allow me to park funds in an offest account and most importantly, as my cashflow increases, I can pay down the loan much quicker than $10k a year extra which I'm already managing.
Loan fees are deductible over 5 years or the life of the loan if shorter. If you break the loan you are able to claim it all in that financial year.
I am not sure if there will be any issues with breaking a loan which was non-deductible for the most part. Best to seek tax advice before you do this as there are large consequences if you get it wrong.
I am not sure if there will be any issues with breaking a loan which was non-deductible for the most part. Best to seek tax advice before you do this as there are large consequences if you get it wrong.
I definitely won't be making any decisions without the proper advice.
So it's likely I could claim back the whole break fee in a year? I didn't have any idea this might be possible. At my marginal rate, the amount would just exceed the entirety of my anticipated income tax but it would be very handy if I could claim it in one year as that could dramatically help in covering the costs of an NRAS property in year #1. The following year the NRAS tax credit + depreciation could cover costs in year #2 (and so on) and I'd be up and running.
So it's likely I could claim back the whole break fee in a year? I didn't have any idea this might be possible. At my marginal rate, the amount would just exceed the entirety of my anticipated income tax but it would be very handy if I could claim it in one year as that could dramatically help in covering the costs of an NRAS property in year #1. The following year the NRAS tax credit + depreciation could cover costs in year #2 (and so on) and I'd be up and running.
