Hi there
I have just purchased an IP in Brisbane which is about to settle. It is currently owner occupied. It needs some cosmetic renovations - paint, carpet, aircon, blinds etc (or at least I would like to make some!).
Anyway I have been advised that I should renovate after I have tenants in the property as the tax benefits are much better. It has been suggested I rent out at a discount for say 6 mths whilst I renovate around them. I would then up the rent to market value after this (fully disclosing the plan to the tenant of course). I am estimating I could get about $30 - 40wk better rent for renovating it.
I am interested to ascertain whether anyone has any experience with this scenario?
I have just purchased an IP in Brisbane which is about to settle. It is currently owner occupied. It needs some cosmetic renovations - paint, carpet, aircon, blinds etc (or at least I would like to make some!).
Anyway I have been advised that I should renovate after I have tenants in the property as the tax benefits are much better. It has been suggested I rent out at a discount for say 6 mths whilst I renovate around them. I would then up the rent to market value after this (fully disclosing the plan to the tenant of course). I am estimating I could get about $30 - 40wk better rent for renovating it.
I am interested to ascertain whether anyone has any experience with this scenario?