Business as Usual

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Business as Usual
Topic Started: Jul 30 2008, 01:33 AM (1,019 Views)
PC Pom	Jul 30 2008, 01:33 AM Post #1
Anyone for tennis? Posts: 647 Group: Admin Member #1 Joined: March 23, 2006	Calling all you business people that rent out homes. I'm sure there are many Brits coming over here who think that they too would like to get in the business of renting out a second home to migrants on a short term basis. I am one of them. Of course it's not easy to do, not just from the perspective of obtaining the mortgage but also the work that goes into keeping the business a viable one and offering 'extras' that a simple rental home on a 6 month contract does not entail. We've got a second property, in Hervey Bay, less than 2 mins walks from the beach, which we let out on a fixed rental contract. Perhaps next year, if the economic picture is suitable, we'll be looking at buying another house (aka getting another mortgage), much more local to us, but this time doing the migrant rental option. Bearing in mind that these properties are investments for a peaceful and stress-free retirement, and I do have a little time on my hands, would running a business like this be a good thing to do or simply do you wish sometimes that you could just let the house out to rent for 6 or 12 months at a time with a property manager? How many houses seem to make up the ideal balance? I know it's a divulging question, so divulge as little as you want, but really I'd like to know if you have any regrets or packets of wisdom you'd be prepared to pass on. Paul.
	Koala Konnection UK to Australia and New Zealand. Migration Made Easy.


Tyke	Jul 30 2008, 05:56 AM Post #2
Happy in Onkaparinga Hills Posts: 233 Group: Members Member #228 Joined: April 25, 2008	Nothing wrong with asking at all Paul. Our set up came after years of careful consideration. We've always dabbled in property and long term it's the way to go. At the moment property prices are beginning to slip a little here in Adelaide - I'm not worried as I know they will go up and beyond again. The idea for furnished rentals came from our first stay in Oz in 1997,we actually rented our friend's sons house furnished - we really did want to taste the life here and not be isolated in a hotel. You really have to have a strategy and plan B. If we found the furnished rentals to be unsuccessful we would drop the houses back to long term rentals. Our financial situation means we don't worry too much about mortgage repayments which gives us much less pressure of filling vacancies. Finance should be no problem ,banks will just lend as an investment mortgage.They won't care if it's short or long term. Buying property is a "Good debt" by the way.Sometimes it's tough but you have an appreciating asset you can dispose of - unlike other stuff you can get on finance. A good accountant is essential - depreciation,offsets,building costs and so on are a great benefit to the finances. To fit out and furnish budget for around $20,000 tops,this should take care of all furniture,fitments and decorating. Not sure if you would get that bit financed easily though. The set up should be neat and friendly - almost minimal. Fittings and furniture should be not too expensive - I guarantee you'll have to replace on a regular basis. It's certainly not as profitable as some may think,there are a lot of costs such as utilities and upkeep. How is the competition your way?? When we started up there was only one other person on the forums in Adelaide doing this - now there are several. Can you stand fallow periods??? The mortgage won't go away. We do have vacancies that cannot be filled,we said if we can fill for 40 weeks of the year we'd be happy - done that The trouble is that less are coming out at the moment,booking and inquiries have gone down - mainly due to the economic situation in the UK and poorer exchange rate. Not sure how it's going to go but I'm sure the owners with heavy mortgages will be sweating. The set up looks easy but sometimes it can be hectic. With 2 houses it can be fun when we have guests leaving on one day and new ones arriving the next - cleaning a house for new arrivals takes around 5 - 8 hours + gardening + cleaning windows. There has to be a high standard. You might work all weekend. Are you flexible for your arrivals?? We've had from 6.00 am to 12.30 PM - hard to keep to a check in /check out time. Regular maintenance is the key - if it looks a little tatty - replace and repair instantly. Hope this helps - suppose I have divulged a fair bit of info there but it's to the point and will help
	Quality furnished ,short term rentals.2 beautiful houses,in Woodcroft and Seaford. "Home from Home" Auseelife


airconkid	Jul 31 2008, 09:56 AM Post #3
MODERATOR- Great White Posts: 637 Group: Members Member #25 Joined: November 14, 2006	Mint reply Tyke, I enjoyed reading it. Aircon
	Grab the cane toad by the legs and go for it, life is too short to wander "What if...." or "If only...." Now LOVING *"A New Life Down Under"*


PC Pom	Aug 6 2008, 03:44 AM Post #4
Anyone for tennis? Posts: 647 Group: Admin Member #1 Joined: March 23, 2006	Cheers Russ. I agree with you about investing in property as a long term strategy. We only started doing it a couple of years ago, so it's something quite new to us. I'm aware of the depreciation schedules and tax breaks available and they are surprisingly good in Australia. There is an incentive to go out and buy a second house - it's almost as if the gov. is telling you to "invest for the future because the state pension will be hopeless by the time you retire, mate" and I think they're right. We will look into it next year, I'm sure. With the reduction in interest rates a likely proposition now, I'm sure I won't be alone in looking to invest in this migration area. Thanks for taking the time to share your thoughts. Appreciated. Paul.
	Koala Konnection UK to Australia and New Zealand. Migration Made Easy.


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