Maximising Your Drummoyne Property Investment
Getting the best result from any property investment essentially comes down to two things – minimise outgoings and maximise the income. Understanding the tax treatment of rental properties is fundamental and as one tax year ends and another begins, it’s the perfect time to get your house in order.
Maximising the income is pretty straightforward – make sure the rent keeps pace with current market values and perhaps even more importantly, find good tenants and keep them by promptly taking care of any maintenance requests.
Minimising outgoings can be a little more complicated. Many expenses relating to investment property are tax deductible, but it still pays to make sure you’re not over-paying. An annual health check on any mortgage over the property by a qualified broker will ensure interest and other charges are minimised, one of the key expenses for most landlords.
“The average investor is often not aware of the rate they’re actually paying and may well be able to save money through refinancing,” says Drummoyne Loan Market broker Liz Henderson.
The other most often overlooked area in property investment is depreciation. While the Australian Taxation Office reported around 65% of landlords claimed depreciation against their rental property, many do not have a tailored depreciation schedule prepared by a quantity surveyor. Tyron Hyde of Washington Brown estimates the average claim for a Drummoyne landlord in the first year is around $5,000, with properties built after 1987 likely to attract an initial claim of around $12,000.
“The cost to prepare a schedule is around $600 – $700, which is also immediately tax deductible. We conduct a physical inspection of the property to calculate the age and historical cost of the construction and assets, allowing us to produce the schedule,” Tyron says.
“Landlords are also able to amend their previously lodged tax returns for up to two years.”Posted by