Renting out unused space is great way to supplement your income. You might use the funds to pay off your mortgage faster, afford a new property or take your family on a holiday. Whatever the purpose, renting out is a very flexible way to get more out of what you have.

When you rent out to strangers, you get the chance to meet some very interesting individuals from a variety of backgrounds. Who knows what adventures your new connections could lead to?

Depending on how often you rent out a space and at what rate, you may see a return of several thousand dollars per annum. How could you not consider renting out an unused room, apartment or home?

Earning a few extra dollars may sound as simple as putting up a property listing on Airbnb. But there’s actually a lot more to it than that.

Here are a few things you’ll need to keep in mind.

– You must be legally able to rent or sub-let if you are already living in a rental property.

– You will owe tax. You must report your earnings when you file.

– Renting on a home you later sell will likely incur capital gains tax.

– You might need extra insurance. Most peer-to-peer rental services offer some kind of insurance but you shouldn’t rely on that alone.

– There will be both start-up costs to prepare the rental and continuing costs to maintain it.

– You must make the time to maintain and market your rental space. It can be like taking on a part-time job.

There are quite a few factors to consider before you go ahead and dive into offering a bed-and-breakfast-like rental space. It’s good to get some financial advice before you do so.

After ensuring it’s legally okay, you’ll want to look into sprucing up your rental space. This includes not just a thorough cleaning, but installing cable, wifi, appliances, new bedding and possibly furniture, security systems or locks and even a laminated file of house rules.

Once your property is guest-ready, it’s time to advertise. You may want to branch out and market your property on more than one website to increase the odds of someone choosing your space. Don’t underestimate the importance of high quality, professional photos.

How much you charge will have a lot to do with your location, what attractions and conveniences are nearby and what amenities you can offer.

Keep a careful collection of all receipts and records pertaining to your property’s income and upkeep costs. These will come in handy when it comes time to report your income for tax purposes.

For more smart money tips as well as finance and mortgage services, contact the expert team at Emnon.

– Dom Cassisi, Managing Director

1 – Grand Hyatt Hotel

Formerly the Commodore Hotel, Trump purchased it in 1974, restored it over the next six years, and it’s been a popular place ever since.

2 – Trump Tower

This was the primary residence of Donald Trump before moving into the White House and remains in vogue with high-end shopping venues, eateries and residential apartments. Trump built it from the ground up and it officially opened in 1983.

3 – 40 Wall Street

Purchase price: $1 million USD. Renovated to the tune of $35 million. Value today? $500 million. That’s a very attractive turnover!

4 – Trump International Tower Chicago

Chicago Sun-Times’ old headquarters was bought by Trump in 2005 and it’s currently a hub of upscale condos, restaurants and one of the country’s best large city hotels.

General Motors Building

Trump went in on the purchase in 1998 with a company called Conseco which soon thereafter went bankrupt. This ultimately left Trump backed into a situation where he was forced to sell for relatively minimal profit.

Trump Casinos

Three casinos in Atlantic City have filed for bankruptcy more than once. Despite owning these facilities, Trump is so disappointed that he wants nothing to do with them.

West Side Yards

Trump had lofty visions of establishing ‘Trump City’ in this area when he purchased it in 1985. But some tax limitations and a feud with the Mayor didn’t let that happen. Instead, Trump was forced to sell the majority of his stake to investors and lost a lot of control over the property.

The Plaza Hotel

Although purchasing the Plaza was a good move loaded with promise, a failed airline venture soon after plunged Donald Trump into debt. He eventually handed over half of his ownership stake in the Plaza in order to reduce his debt and lost some $80 million.

Even the wildly rich Donald Trump has made many investment mistakes. And we’re certain that experienced advisers were behind his good decisions! 

So, leave your finance needs in the hands of the experts. Emnon is the go-to firm in Northeastern Australia for your mortgage and property investment needs, getting you the best possible finance deal. 

Get in touch for a free, no obligations discussion about your needs.

It may take you a while to find a tenant for your new investment property. This is where a tricky mix of patience versus panic can come in. Residential property tends to be more fluid in times of financial hardship. If your sole tenant of a commercial property falls on hard times, it could be a lot harder for you to stabilise the situation.

Choose your tenant carefully when the time comes. Someone with the backing of a large company or even the government would be a safe choice.

Commercial property is great for investment because you usually don’t have to put much work into it once it’s up and running. But you still need to keep in mind a few risks. For example, how will you manage the costs if the property goes vacant?

When it comes to your lease for a commercial property, remember that it will probably be lengthy. We’re talking a minimum of five years, on average. Both you and your tenant need to be ready to commit.

Commercial property leases are not just long – they’re also extensive documents. You’ll need professional legal help to draft one, to help you ensure that nothing is overlooked.

Make sure you and your tenant are familiar with important details in the lease so that you both know what’s expected of each other.

To set up a successful commercial property, you need to be familiar with the need in the area.

Do you understand what’s driving the demand for businesses in your neighborhood? Population growth, changes in demographic and new infrastructure will all influence the popularity of the business on your property.

You’ll need to be prepared for the way interest rate increases will slow consumer spending and company growth. By anticipating key factors, you can make smart decisions about setting up a commercial investment property.

A commercial property agent will help you find the right business match and also knows what advantages and deals to offer.

For all it’s risks and uncertainties, commercial property investment offers some great benefits:

– Less maintenance

– Predictably steady rental income

– Significant cash benefits

– Easier to deal with non-compliant tenants

– Flexibility

– Increase rent as value of property increases

– Tax benefits

– Diversify your portfolio

It’s a great way to increase your wealth, provided you do your homework and maintain balanced expectations.

To maximise your investment in commercial property, it is crucial to get the best possible loan deal possible.

But with literally hundreds of options offered by banks and finance providers it’s a complex area to navigate, which is why you should speak to an experienced finance broker.

Whatever you do, don’t try to go it alone when you start exploring commercial investment properties. It’s easy to get swept up in a great “deal” with fancy wording and “extra features”. You’ll need financial experts to help you interpret the fine print and identify the best deal for you.

For finance help with your next commercial property investment, contact Emnon for a free, no obligation discussion.

– Dom Cassisi, Managing Director

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Which commercial property is right for me?

If you haven’t heard yet, there are two hot topics trending on the housing market: the return of housing investors and the upsurge in refinancing.

Australia’s financial environment is turning around – and turning a favourable eye towards housing investors. Statistics show that they’re back and the market is booming. There’s no time like the present to get in on this action to score yourself a piece of the pie.

To help you get a leg up in this ultra-competitive market, you may want to consider refinancing. The good news is that this isn’t an unusual thing to do. Lenders everywhere are helping many of their clients to refinance. It won’t be difficult to find a method that suits your needs.

For starters, you probably won’t need to worry about any exit fees when you restructure your mortgage or loan. Exit fees were banned in 2011.

What if you entered your agreement before that year?

The exit fees imposed way back then would still apply. Happily, most lender entities are offering to pay those off for their clients in favour of helping them refinance within their own institution.

On top of this, banks and lenders are offering all sorts of perks and rewards for refinancing. These include cash rewards, waived fees, and offers to pay any fees incurred by switching to their institution.

Just because many people are refinancing right now doesn’t necessarily guarantee that it’s a smart move for you. All those great perks offered by banks and lenders make any deal sound appealing. But you need to be alert to a few potentially painful surprises such as:

– Applications fees

– Registration fees

– Account fees

– Lender’s Mortgage Insurance

Loan features that sound good in theory but have no practical benefit for your circumstances

Guard against a hasty decision by seeking the advice of your accountant and finance broker.

Look before you leap and contact our team at Emnon. We’ll help you weigh up your options carefully after taking an honest look at your current financial situation.

– Dom Cassisi, Managing Director