renting out your apartment.

[steveyd]

Hi,

When you decide to rent out your previously PPR apartment, what do you need to consider?

- do you have to contact your mortgage provider and tell them it is now an investment property. will this affect your APR?

- Do you need to tell managment company?

- Is there any insurance issue with renting it out or will it still be covered by the block insurance?


thnks

 

[ClubMan]

There are lots of existing threads that might be of interest covering, as they do, the mortgage, insrurance, [PRTB] registration, tax, investment and other implications of renting out a former PPR.

 

[NorfBank]

Main issue, did you pay stamp when you bought your apartment?
When did you buy your apartment?

 

[CCOVICH]

- do you have to contact your mortgage provider and tell them it is now an investment property. will this affect your APR?

It's probably a condition of your mortgage agreement that you tell the lender. They may charge you higher rates as a result, but you are free to shop around.

- Do you need to tell managment company?

It may be a condition of the leasehold management agreement, but it shouldn't matter one way or another.

- Is there any insurance issue with renting it out or will it still be covered by the block insurance?

As far as I know, who resides in the apartment is irrelvant for block purposes, but the situation may be different for home (contents) insurance purposes.

All the questions can probably be answered by reading the various documents (mortgage agreement, leashold/management agreement, insurance policy). You may also want to read the Key Posts on property investment.

As far as tax goes, you will no longer be eligible for TRS and stamp duty clawaback may apply.