Seeing as the tax year is ending soon, we wanted to share some tips that some of our investors use to put more money back in their pockets. We will use real examples, share the $ saved or invested and share some of our reliable contacts so you can take action.
Of course, check with your accountant or financial advisor to see how this applies to your individual situation:
- Depending on your water usage arrangement with your tenants, consider getting your property water efficient. One of our Petrie landlords recently spent $120 to have his property certified including a minor adjustment to his laundry taps, and is now able to recoup an additional $200/year water usage from the tenant. On top of the savings, a water efficient property saves water and is good for the environment!
- If you don’t have a tax depreciation schedule, get one now! An Aspley investor for example saved $5,613 in their 1st year of their investment, and they will continue to save more in the coming years. A reliable quantity surveyor we use is Real Property Matters (www.realpropertymatters.com.au) who will not charge if they cannot find significant tax deductions for you, or BMT quantity surveyors will do a complimentary estimate of potential deductions based on photos upon request.
- Consider installing solar panels. You may consider installing solar on condition of your tenants agreeing to a small rent increase. It’s a win/win scenario. Claim an asset write off and at a price increase of $10-15/week, it can be paid off over a number of years, be your asset and future tenants will continue to pay more for a property where they save considerable $ on electricity bills. Plus, it’s good for the planet. Solar Asset Management (solarassetmanagement.com.au) provides free quotes for solar installations, upgrades and other energy related matters.
- Refinance your home loan. Some people are paying comparison rates under 3% on interest only, with Principal and Interest Fixed Rates as low as 2.29%. If you can save 1% on a $300,000 loan, that’s $3,000 extra in your pocket every year. Contact your mortgage broker or negotiate with your bank direct to see if this applies to you. A reliable mortgage broker we use is Thuy Hook contact [email protected] or 0449150117
- If you are planning on general repairs, consider bringing them forward to this tax year. For example, if you are spending $200 to replace a faulty fan soon after 1st July, you could bring this forward and claim the repairs as a tax deduction now and save e.g. $66 in your FY20 tax return, rather than in your FY21 return 12 months later
Our team is focussed on making the investing and renting experience simpler for everyone, so if we can help, just reach out and let us know.