Happy New Financial Year!
It’s end of financial year. This is a fantastic time to really examine how your investment property has performed. Has the value of your property increased? The combination of having rental income to service your loan, and potential price increases in your investment area could have created some equity that can be used to reinvest or to refinance.
When it comes to end of the financial year, it is all about your tax. As a property investor, you can take care of your tax yourself, but make sure that you are well educated on everything that you can claim. It can be worthwhile speaking to an experienced accountant who knows the ins and outs of property investments, and is aware of all of the possible deductions to maximise your tax return.
Below is a list of some of the common tax deductions that you may be able to claim as an investor.
- Advertising for tenants
- Council rates
- Water charges
- Strata / Body corporate fees and charges
- Property agent’s management fees
- Repairs and maintenance
- Insurance (building, contents, public liability)
- Accountant costs
- Land tax
- Gardening and lawn mowing
- Pest control
- Interest expenses (only the interest on your repayments)
For more information about deductions, and everything tax related have a look at the residential rental properties section of the ATO website
Remember to stay educated and surround yourself with a good team to ensure that you are getting the most out of your investment. A high quality and trustworthy accountant, bank manager or mortgage broker and of course property manager can make the world of difference when it comes to the bottom line on your investment.
Note: this is general advice and should not be taken as professional financial advice. For more information specific to your circumstances, consult a financial professional.