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Know your rights before purchasing an investment property

Know your rights before purchasing an investment property

by Cameron Micallef | February 10, 2020 | 1 minute read

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.

Know your rights before purchasing an investment property
February 10, 2020

According to Archers partner Grant Mifsud a recent court rulings found permanent residents in a SunshineSunshine, NSW Sunshine, VIC 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.

About the author

Cameron Micallef

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

Know your rights before purchasing an investment property
Know your rights before purchasing an investment property
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