Attention all LANDLORDS!
As a landlord, you should be always looking at various ways to reduce your outgoings.
Some ideas you should consider include :
1) Reviewing your loan arrangements on an annual basis is a good habit. With the scrapping of lenders Exit fees, this allows for investors to seek alternative finance options, giving you more leverage with changing times, circumstances and situations. Please note that this may not be an option if you have a partial or full Fixed Rate loan.
2) Checking on the suitability and optimization of your current loan – Does it suit your needs? There can be significant differences depending on the borrowers tax structure. In some cases, a different set-up or structure may be better suited to achieve your financial and life goals. Have you considered this option?
3) Commissioning a Tax deductible Depreciation report from a Quantity Surveyor. This should be done annually. As the ATO allows investors to claim depreciation in the value of the assets they use to earn income, this comprehensive depreciation report is a great resource for your future strategy and leverage. For example, on a recently built property, the depreciation report could be beneficial for many years. Remember to do this annually or whenever new items have been purchased e.g. dishwasher, hot water systems, or light fitting s etc.
4) When using a Real Estate Agent, ensure that you get the optimum value for your purchase. Many investors tend to hand over a percentage of the earnings on their investment to the managing agents via administration fees and in return ask them to collect the rent. The agent is technically working for you. Therefore, the Agent should be processing all expenses such as council rates, water and body corporate fees. From an accounting viewpoint, it would be easier for the agent to process all of these expenses and issue you with an annual statement. If you have an agent managing your property/s, use them.