Sometimes in life we are faced with decisions that involve relocating, for either professional or personal reasons.
It can be a tough choice deciding whether or not to sell or rent out your current home, so here at RealRenta we have listed 9 Tips to help you turn your home into an income stream:
• Prepare a detailed budget for the period that you will be away, that accounts for all income and expenses associated with renting out your home
• Be objective and detach emotionally from the property and if you’re planning to come back to this home, focus on maintaining your asset rather than maximising investment returns.
• Talk to local Agents to get some advice about rental yields in your street and suburb
• Research your suburb to see what the trend is for capital growth.If the market has reached its’ peak, it might be a good time to sell, especially if you are uncertain how long you will be away etc
• Ensure that you have the right team in place,ie an accountant, legal advisor & adequate cash flow to manage the outgoings, a platform that saves you expensive management fees and automates the whole process- like RealRenta.
• Ensure that your home is safe and free of any defects, and attend to repairs and maintenance that will bring it up to marketable standards and to meet your legal responsibilities.
• Seek independent advice on tax planning; you will want to consider maximising deductions and minimising your tax liability, whilst protecting your capital gains tax exemption.
• Obtain legal advice about transferring the home into one name for tax purposes (joint names is not optimal when it comes to property investment)
• Check your home loan and see if it is adequate to help you achieve your objectives; you may need to change to an investment loan
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Thursday, 4 July 2019