Airbnb in Sydney is really good. I have two properties on Airbnb and they’re both doing really well. They both have long term tenants.
Hello, everyone. Hello, and I hope you are having a great week. I hope those renovators who are in Victoria are surviving and that it really gets under control soon because it absolutely sucks being back in lockdown. I really feel for you.
Well, I might get started and so this week. So firstly, I want to tell you about an awesome new resource for renovators that I discovered yesterday. At this stage, it is only open to people living in Sydney and Adelaide. Not very often that Adelaide is, you know, in the front line for new things. But yes, with this one, it is. And it’s basically what it is, is the Caroma have set up an experiential centre. So basically what they have done is decked out a really stunning space. It’s a warehouse space and they have set it up like it’s a bit like an event space. It’s got boardrooms and training rooms and showrooms.
And so basically, they’ve set up bathroom pods with different styles, with a variety of different interior designers who have designed them. And so in terms of getting inspiration for your bathroom renovation, it’s a great place to go. And they have a whole lot of tools for designing a bathroom. So, like, interactive tools. And I will share a video just showing how they work is so cool.
So basically what you do, they’ve got this thing that you design your bathroom with little components like dollhouse house components, and then they have glass as virtual boxes that you can look through. So basically you’re in the bathroom, it’s very cool. And the other thing that’s available to renovators there is you can have an interior design or consultation with an interior designer to design your bathroom at no cost. So there’s no selling. So there’s nothing to buy there because Caroma did sell through distributors. So it really is a fabulous resource. And so it’s called the Caroma Flagship Store.
And so I strongly recommend you get along to that because it’s just something that, you know, it’s incredible resource and it doesn’t cost you anything. So if you’re planning a bathroom reno, then it’s a really good facility.
And for those people who are coming to the She Renovates Live you are going to get to see that with us because Caroma have offered to host drinks after our event in November. So that will be incredibly awesome. So we’ll be heading around there after the event.
So we have sold 60 percent of our tickets. Okay, so we’ve only got 40 percent left and we’re a week and a half in. So tickets are going, selling quite well. This is you know, it’s the first time we’ve ever run this. And it’s an event for women who absolutely adore renovating and using renovating to transform their lives. And so whether that’s you or whether that’s who you want to be, it’s going to be a fabulous day.
And so I’m sure there’s a link in the group to grab a ticket but I strongly recommend that you do. We have an early bird price. And the way they’re going, we probably won’t get out of early bird. But anyhow, we’ll see how it goes. And so that’s really something great to look forward to.
So Leanne is talking about one of the presenters in our in our School of Renovating program, it’s Damien Patterson, who is a friend of mine. And Damien’s product line is some sort of off the plan, which we don’t do so much but he has some fantastic insights into the property market. And so, yeah, it’s good.
What’s Airbnb in Sydney like?
So the other thing that I wanted to talk about today is I had a question about Airbnb. So Airbnb has been a bit on the back burner up to this point since Covid because it was really badly hit by the lockdowns and the reduction in international travel for many hosts, international guests are a big part of their market. And however, since the restrictions have lessened in most states, it’s really picked up.
Now, the question I got from Joanne Ryan, good to hear from you, Joanne. So restrictions on Airbnb coupled with no international travelers.
“How are you surviving Covid? Was wondering your opinion on Airbnb in Sydney at present. Heard there were restrictions on Airbnb being coupled with no international travelers. I’m trying to help a friend out, they have a studio or office at the back of their house in Zetland, really central which could end up as an Airbnb. What would you think? Would you think it was worth it?”
Airbnb in Sydney is really good. So at the moment I only have two properties on Airbnb and they’re both doing really well. They’re both, they both actually have long term tenants. So one came from New Zealand. And she has a home in Melbourne and did intend to go and stay there but because of the lockdown, she’s decided to stay. So she’s in my BnB for three months. The other one has, it’s getting bookings of around about two weeks, which is really awesome. It’s much less work to manage. So in terms of the restrictions on Airbnbs. So the government passed a law saying that you would be limited to 180 of Airbnb per year unless you physically lived at the property. So when you’re talking about a studio at the back of your home, I would suspect that that would meet the criteria for living at your property. So that’s awesome because it means that you’re not affected by that law.
The law, however, has not been activated. It was like, seriously, it was due to be activated probably six, no more than six months ago before Christmas. And then they said, no, we’re gonna put it – firstly, they said we’re going to put it off until after the elections. Then they said, no, we’re gonna put it off until the end of the year came and went. And then when Covid hit, they said, we’re gonna put it off.
And I suspect that our government has bigger fish to fry and that they don’t want to do anything that’s going to impede on the economic viability of its inhabitants. And so that looks like, this is just my opinion and not the truth, it looks like it’s been put on the back burner, you know, until further notice.
However, when it does come in, it will mean that you can only have if you’ve got a whole property rented out, then you can only have it on Airbnb for a certain 180 days per year. But with most properties, they have a occupancy rate of around 70, 75 per. So 180 days sort of equates to most of the year. And so there are ways of managing that so that you stay within the law and yes, you still are able to stay viable.
The other thing is whether it’s worth it. You know if you’re going to put some time and money into setting it up. So for me, if I set up a property I’m going to invest probably between three and five thousand dollars on furnishing and so on. So I want to know that it’s a goal before I go ahead. And I will use several techniques for several research tasks to make sure that I have researched the potential adequately so I can confidently predict what my income is going to be.
One of those tools is AirDNA, which does give you some data on the potential income. However, I have found the data quite unreliable. You really do need to cross check it so that if you know it’s no big deal, it’s not going to cost you too much. Why don’t you just give it a go and just see what sort of response you get? Zetland, that’s actually quite close to me. So I know the area quite well. It’s good because it has a train station, so that’s quite close by. It’s close to the airport. So for a location, it’s quite a good location. And so my advice would be give it a go. And of course, if it’s gonna cost you too much to set up, in which case you will go into more of a research process.
There’s just one other thing I wanted to share today, and it’s a bit random, so you may not know or you probably do know my husband, Stephen, is he’s in construction but in the construction of universities and hospitals. And David, our son, is an architect. He does a lot of residential but he also does a lot of big things, like he did Barangaroo House at Darling Harbour and the mall. And he’s doing, I can’t remember what he’s doing – I think these council chambers. But sometimes they talk about thing that that they are dealing with. And they were talking the other day and this really surprised me.
So with the redevelopment of one of the hospitals, there was a child care centre involved in it. And so the child care centre was built according to the, so obviously there are childcare specialised designers and architects involved in the construct in the designing of it, according to the building code or what it’s now called the National Construction Code.
And the fence that went right around the centre was, according to that we call it, the BCI. And the staff were saying how the children were able to squeeze their body through the fence but their heads wouldn’t fit because the fencing is built to 125 millimetre apart the uprights and so he is – Stephen – discovered that that in chalk is cinches.
The fencing code is not the building code. It’s the pool fencing code. And so whereas normally and this applies to balconies, on verandas and so on, the pool fencing code requires a much smaller gap between the uprights. So it’s only 100 mil.
And the reason being is because a small child can’t get their head through but they can get that body through. And so there’s a risk of them falling and being hanging by their head. And I thought, oh my God, I’ve got to tell people that because while it might or might not be required for your particular form of construction, I would be going with the pool fencing code to make sure that that never happens. So if you’re doing that style of fencing in an area where children are likely to be playing unsupervised, then I think that that would be a really good tweak to make sure that you do make sure that that never happens.
“Should you get a tax depreciation schedule done before you renovate your investment property? Or do you do it after you’ve completed? The property is about 60 years old.”
Okay, so, Karina, one of the things that you could be, you should be aware of is when you are renovating an investment property, if it is going to be, so this comes out of our training so I’m giving you some of the insider secrets here. If the property is going to be available for rent after it is renovated it is possible that you may be able to use the scrapping special, which is basically Europe. You may be able to write off the things that you take out of it.
So basically what it means is you get two bites of the cherry. One way you get a tax deduction for everything you get rid of. And the other way you get a tax deduction from the things that you put in there, because as a renovator, you’re putting the plant and equipment in which normally would not be tax deductible but because you’re doing it, then you can claim it on your depreciation schedule. However, what I would suggest you do is have a conversation with a quantity surveyor and ask them because some sometimes I’ll say just take photos of what you’re taking out and we’ll deal with it afterwards when we do the depreciation schedule.
But I would definitely have the conversation first and make sure it’s with a quantity surveyor and not your accountant. Because quantity surveyors are the people that are most, that are highly specialised in this area. If you have the conversation with your accountant, often they will just say, “Oh, no, don’t worry about it. We’ll just use my schedule.” You are much better if you’re going to get a depreciation schedule done. You should be using your quantity surveyor because they will get you more money back, basically. So I hope that answers your question.
So lovely to see all the activity on the group. I noticed that Linda Kettle has done a fabulous reno on her home. And Linda Prince, you’re a student. You get access to our new updated bootcamp. I would suggest that you get in there because a lot’s changed since you came through and go through it because it will make a difference to your renovating.
And lastly, we’re all excited about our new project. So one of, so three for joint venture members. So basically, I’m running the project because we are running a new structure with joint ventures where one person runs the renovation so that three people don’t have to. But of course, everyone’s coming along to enjoy the experience of picking colours and so on.
But we’re going out the less democratic way because it’s a little bit more efficient. And that’s one thing that I will be talking about at the live conference. Basically how it’s worked in terms of our new legal structure through Property Circles. And it’s so far so good. It’s been a much less stressful, much easier process.
Okay. Well, on that note I reckon I’m going to call it a day if there’s no other questions. Okay. Oh, great. Thanks, Karina. Take care. Bye, everyone. See you next week.