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Chch boarding house - rent by room IP
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Hi there,
I am looking to invest into a boarding house in CH.
I was wondering if anyone had any good tips to give me. I know nothing about boarding house, financial returns, regulations and rules. I am just starting.
Mistakes to avoid, good stories too.
Any information would be welcome
Thank you
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Hi Nick,
From a GST perspective it is important to be clear what you are doing.
1) boarding house with long term residential tenants, that each sign a residential tenancy agreement. Then this is a residential rental property for GST purposes and no GST
2) Boarding house with short term tenancies - will be GST. In simple terms full GST on short term under 4 weeks, and 60% of this (9%) GST on over 4 weeks.
Why this is very important to get clear at the start, is so that you can get advice about the GST on purchase. Otherwise you mess around with, is there GST, or isn't there GST, or is it zero rated. Make sure you are really clear on which camp you are going to fall into, then get specialist property accountant advice about the GST
RossBook a free chat here
Ross Barnett - Property Accountant
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HI Ross,
thank you very much for the GST info. Indeed it seems a bit scary the tax rules from the outside.
Would you know what is considered a long term residential tenant ?
Would you have any info on expected profitability, opportunities and risks of a such investment ?
Many thanks
Nick
Originally posted by Rosco View PostHi Nick,
From a GST perspective it is important to be clear what you are doing.
1) boarding house with long term residential tenants, that each sign a residential tenancy agreement. Then this is a residential rental property for GST purposes and no GST
2) Boarding house with short term tenancies - will be GST. In simple terms full GST on short term under 4 weeks, and 60% of this (9%) GST on over 4 weeks.
Why this is very important to get clear at the start, is so that you can get advice about the GST on purchase. Otherwise you mess around with, is there GST, or isn't there GST, or is it zero rated. Make sure you are really clear on which camp you are going to fall into, then get specialist property accountant advice about the GST
Ross
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