Why are people bat sh*t crazy over investment properties?
Well for one our Government loves it when we own them; so much so they’ll give you the ability to deduct certain outgoings (expenses) off your overall tax bill, meaning you may end up paying less tax or even get a sexy return when you do your tax return.
NOTE: The property must be up for rent – in order for you to potentially claim back on expenses.
Click on the headings for more info.
When your home loan is first established you may incur establishment & admin fees which you are able to claim back. Along with that you have the ability to claim back on the interest you pay on your property. If you’d like to know that scary number of how much interest you’ve paid the banks- most online banking platforms have the option to show you how much interest you’ve paid so far in a financial year.
What this means is that you can potentially claim back on certain assets within your property as they get older and worn out. A rule of thumb for figuring out what you can claim on is if you tipped your property upside down – everything that is still attached to the property or apart of the property itself can be claimed ie blinds, walls, ovens, carpets.
Yea that’s right- you can get someone to professionally clean the gardens and mow the lawns and you can claim that bad boy back.
If you choose to take out insurance for your property ie land lord insurance; home n contents – you have the ability to claim back on the premiums you pay.
I guess this is one of the more appealing things about owning an investment property – you can claim back on all those pesky bills you’ll get for owning the property.
If you have delegated a property management company to run your property; you are able to claim back on the fees they charge you to maintain it.
Another sexy part of owning a property is having the ability to claim back on any repairs or maintenance on the property – JUST REMEMBER TO KEEP THE RECEIPTS
That’s right you are potentially able to claim back on the costs of travel to you investment property. For properties nearby you may claim motor vehicle deductions on inspection trips. For properties at longer distances, you may even claim airfares! – did someone say investment property in Hawaii?
NOTE: Keep all invoices and receipts on all expenses for proof.
Remember that everyone’s circumstances are different; speak to a tax specialist to see whether or not you can claim on the above.
Let me know what else i missed in the comments below.
Important disclaimer (we gotta say it): No person should rely on the contents of this article without first obtaining advice from a qualified professional person. This article is provided on the terms and understanding that the author and ZAINY GROUP PTY LTD t/a Young Property Investor are not responsible for the results of any actions taken on the basis of information in this article, nor for any error in or omission from this article. The article is provided for general information only and the author and ZAINY GROUP PTY LTD t/a Young Property Investor are not engaged to render professional advice or services through this article. Read our disclaimer for more details.