Know your rights before purchasing an investment property
Investors in popular tourist destinations are being urged to check if their unit is approved for either short- or long-term stays before purchasing, an industry adviser warns.
According to Archers partner Grant Mifsud a recent court rulings found permanent residents in a Sunshine Coast complex were living there unlawfully, because the building was only approved for short-term stays.
“If you are considering purchasing an apartment as an investment or for a sea change make sure you are aware of the planning approval for the building, particularly if it is a resort complex,” Mr Mifsud said.
The industry expert said on the flipside, investors looking to purchase properties for short-term stays might be impacted if the accommodation has restrictions on living.
“Airbnb in Queensland is governed by more than 70 different sets of local government zoning laws with some councils imposing expensive planning approval requirements for short-term letting,” he said.
Mr Mifsud said the growth of short-term rentals through Airbnb and other platforms had made it more complicated for those looking to move for a permanent sea change.
“A lot of units in some complexes are also really only suited for short-term rentals as they don’t have necessities for long-term residents such as a properly equipped kitchen, laundry facilities or letter boxes,” he said.
“Often the permanent residents and the visiting tourists don’t mix well. Councils in popular holiday areas such as the Sunshine Coast and Gold Coast are also looking to ensure there is enough accommodation for the tourists.
More from this writer:
-
Highrise of lies: Gold Coast developer cops fines over GST fraud
-
4 danger signs property investors need to watch
-
Brisbane Olympics set to boost commercial property
-
Landlords forced to ‘carry the can’ following Victoria’s lockdown
-
How this first-generation Aussie bagged a $2.5m portfolio by 32
-
How this investor is turning a marriage breakdown into a fresh opportunity
-
The best and worst rental yielding suburbs revealed