Rent or Sell

Submitted: Wednesday, Jan 23, 2008 at 12:50
ThreadID: 53828 Views:1686 Replies:10 FollowUps:10
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Just wonderting if anyone has rented there house out while they we're travelling around and if you had negative gearing etc. We're thinking of renting out privately, or if it's all too hard just selling and investing the money else where until the perfect spot pops up on our travels.

Cheers
Jeanette
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Reply By: Spider - Wednesday, Jan 23, 2008 at 12:58

Wednesday, Jan 23, 2008 at 12:58
if you were to rent out your current house, provided you don't buy another classified as a principal place of residence, then you have 6 years grace before you would have to pay some capital gains tax on the sale of it.
I would be inclined to keep it, particularly if you are only heading away for a year.
AnswerID: 283310

Reply By: Hairy (NT) - Wednesday, Jan 23, 2008 at 13:22

Wednesday, Jan 23, 2008 at 13:22
Gday,
I'm going to rent mine for a while.
Too many of my mates have sold up and left, gone to the city, found out they don't like it and come back. They usually regret selling.
As for renting...I'm going to do it privately.
I also know people who have done it through agents and have had all sorts of trouble. If you have trouble with a tenant and ask the agent to remove them it can take months and cost you a fortune.
If its private you just fly home, throw them out and tell them to take you to court. Its a lot cheaper and quicker.

Here are two true scenarios.
A mate had a house in Coffs Harbour (rented through an agent)and lives in Alice. house (even digging out plants from the garden and selling them!) It took the agent months to evict them and was up to him to pay court costs to try and recoup his money. He lost out!!!

A mate had a unit he rented out in Alice (private tenant).The tenant stopped paying rent and was trashing the unit He would not answer the door or return phone calls.
We went around with a truck, kicked his door in, emptied his unit, left him a note , took it back to the workshop and locked it in a container.
Surprisingly enough he contacted my mate. When asked to pay his rent and repair the damage in return for his belongings or take him to court he decided it was all too hard and left town.
My mate took his gear to the auctions and come out about even.

I know which way I prefer!
Cheers
AnswerID: 283313

Follow Up By: Hairy (NT) - Wednesday, Jan 23, 2008 at 14:08

Wednesday, Jan 23, 2008 at 14:08
Whoops!!!
Should have read "The tenant stopped paying rent and was trashing the ".house ( even digging.......Bla Bla Bla
Cut insted of pasted
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Follow Up By: Gerhardp1 - Wednesday, Jan 23, 2008 at 15:19

Wednesday, Jan 23, 2008 at 15:19
It might have worked for you, but giving advice to act illegally as was done here is wrong.

If the tenant had not run, and gone to court instead, you and your mate would have been in very deep pooh for a number of offences.

Trying those stunts in city areas would definately result in big problems.

PS: I'm not defending the trash that rents and destroys property, but there is a cheap item called Landlord's Insurance which your Coff's harbour mate obviously didn't bother with, so part of the problem he had was of his own making.
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Follow Up By: robak (QLD) - Wednesday, Jan 23, 2008 at 16:24

Wednesday, Jan 23, 2008 at 16:24
hairy, that's some good advice if you can get away with, but li8ke gerhard said, in any larger city you would be in a lot of trouble ie. time and money spent in court.

We had a bad tenant once. To legally evict someone it takes 6 to 8 weeks, and that's the "fast" way. At the end of the day the court ordered the tenant to pay about $5k for rent and damages. Never saw a cent. Went back to court. tenant said they're on a pension and can only afford $2 a week. Court said "OK". Again, never saw a cent.

Well, at least the magistrate got paid for his time by the taxpayer.

best advice is - Choose your tenants well. In the current housing shortage it shouldn't be hard to find good tenants.

R.
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Follow Up By: Hairy (NT) - Wednesday, Jan 23, 2008 at 16:39

Wednesday, Jan 23, 2008 at 16:39
Gerhardp1,
I didnt advise which was the better option but simply put two scenarios forward.
Case1. As for being his own fault...I would have thought if you went through an agent they should been paying landlords insurance or at least adviseing him to.
Case 2. And the only way we would have been in trouble was if he took us to court.
As the only damage that was caused was to my mates property and he wasnt going to press charges and we left him a note to say where his gear was I hardley think it was stealing, any desent judge would have given us a warning and asked him to pay his dept.
Also my mate was my employer so I was getting paid and simply doing as I was asked . Maybe he didnt mean littery kick his door in and bring all the gear back to work. LOL
Well worth the risk in our situation I reckon
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Follow Up By: Gerhardp1 - Wednesday, Jan 23, 2008 at 16:47

Wednesday, Jan 23, 2008 at 16:47
Case 1, I did say PART of his own making.

Case 2, if you were in Melbourne or almost anywhere else, the bad tenant would have taken the Landlord to court.

As for kindly magistrates, ho, ho, ho - you won't find many that are kindly to greedy mega rich landlords chasing poor out of luck tenants - that's how the defence would sound.

When a rich landlord loses against a no-good tenant, as they do 99% of the time, they don't get the chance to not pay at $2.00 per week, either.

I agree with the idea, though, that the deadbeats get a belting and get sent on their way, pity the law doesn't :)
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Follow Up By: robak (QLD) - Wednesday, Jan 23, 2008 at 16:53

Wednesday, Jan 23, 2008 at 16:53
hairy, That worked for you guys but I wouldn't advise anyone else to do that unless you can be sure the tenant will not take it to court. Rememebr that the most dangerous person is the one who has nothin to loose.

and as for "any decent judge" .....
Don't confuse fairness with the law.
The courts are there to uphold the law. Regardless whether it is fair or not.

I too like the idea, but fortunately or not, in a democracy like ours, we are not allowed to take the law into our own hands Because when you do, you're putting some poor magistrate (and a lot of his lawyer mates) out of a job, and he's not going to like that.

R.
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Reply By: Wizard1 - Wednesday, Jan 23, 2008 at 13:23

Wednesday, Jan 23, 2008 at 13:23
There really are some questions on these forums that really don't belong....

How on earth can anyone on a forum know your personal financial circumstances and give sound advice.

Seek the help of a financial advisor. By that I mean someone with formal qualifications.

This may help you make or loose 1000s of $$$$.
AnswerID: 283314

Follow Up By: AdlelaideGeorge - Wednesday, Jan 23, 2008 at 14:44

Wednesday, Jan 23, 2008 at 14:44
That's good advice. Actually this same question was asked not long ago and there were some very worthwhile replies-do a search.

The fact that it may be a ' private' tenant does not prevent the normal operation of all the law applying to tenancies, recaption of chattels, theft, (yes theft), home invasion, burglary (and probably a myriad of others I can't remember) of course. Be careful before taking the law into your own hands - it is not appreciated by the Courts-should it ever get there.

Happy days
George
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Follow Up By: travelbugs - Wednesday, Jan 23, 2008 at 14:47

Wednesday, Jan 23, 2008 at 14:47
Thanks for that all,

Much appreciated your views. We are currently getting financial advice as well, from someone with formal qualifications, was just curious as to what other people may have come across in the same situation.

Cheers
Jeanette
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Reply By: Member - BIGDOG G (WA) - Wednesday, Jan 23, 2008 at 15:01

Wednesday, Jan 23, 2008 at 15:01
Hi Jeanette,
Yeah, Its a good question, I would not sell nor would I rent our house to strangers (or anyone else for that matter).
We have been travelling for years wtih no probs re house.
Get a gardner to come once a month to mow lawns, check the retic etc.
Next door neighbours collect mail and we contact them every 2/3 weeks with a forwarding post office.
Easy.

Regards...............BIGDOG
AnswerID: 283340

Reply By: kiasen - Wednesday, Jan 23, 2008 at 16:17

Wednesday, Jan 23, 2008 at 16:17
Hi Jeanette,

Another option is to get a House-sitter.
This their website: www.aussiehousesitters.com.au
I have no affiliation with them at all but I have heard about
them from other people. All good reports too!
Just another option for you to think about.

Regards Mike
AnswerID: 283353

Reply By: Member - Mike DID - Wednesday, Jan 23, 2008 at 16:40

Wednesday, Jan 23, 2008 at 16:40
Think about how much you'll pay in Stamp Duty, Solicitors Fees and Estate Agents Fees if you were to sell and buy another house of the same value.

It makes replacing the carpet and repainting look cheap.
AnswerID: 283355

Reply By: KSV. - Wednesday, Jan 23, 2008 at 16:41

Wednesday, Jan 23, 2008 at 16:41
Just remember that “invest money somewhere else” is usually risky if you aim to gain more then bank interest. You can win and you can loose. As direct answer to your question I would say it depends – if you own house fully, then I would rather keep it and rent it, if you own less then half, then I would rather sell it and get investment property instead with aim to negative gearing and converting to your residential property later. But as some suggest – talk to trustable accountant.

Cheers
Serg
AnswerID: 283356

Reply By: brushmarx - Wednesday, Jan 23, 2008 at 17:45

Wednesday, Jan 23, 2008 at 17:45
If you are not all that concerned about the legal side of things, just burn the place down, claim insurance, invest the insurance money while away, and build a new home when you come back.
The only losers are us honest insurance payers with higher premiums, but at least you won't have to deal with the typical parasite magistrates, who only follow the pollies in keeping as many desperado criminals out of jail to save the stinking state governments from paying to lock the bastards up.
Phew, I feel vented.
Cheers
Ian
I'll get there someday, or die wanting to.

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AnswerID: 283369

Follow Up By: Hairy (NT) - Wednesday, Jan 23, 2008 at 18:50

Wednesday, Jan 23, 2008 at 18:50
HaHaHa....
You got me thinking now!!

LOL
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Follow Up By: travelbugs - Wednesday, Jan 23, 2008 at 22:08

Wednesday, Jan 23, 2008 at 22:08
You got me thinking too.

I like that one Ian, probably the best one yet. LOL



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Reply By: Members - Chris/Lindsay (VIC) - Thursday, Jan 24, 2008 at 16:02

Thursday, Jan 24, 2008 at 16:02
We rented privately and had no trouble. We found the perfect spot was right back at home 12 months later. have a fantastic trip.
AnswerID: 283533

Reply By: travelbugs - Thursday, Jan 24, 2008 at 17:16

Thursday, Jan 24, 2008 at 17:16
Thanks everyone, great tips there to consider, have to buy a laptop now so we can keep coming to this site on our travels.

Cheers
Jeanette
AnswerID: 283556

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