Thinking of buying another investment property? If so, what are the pros and cons of buying the property and inheriting the Tenant who remains in occupancy on the date of settlement? The ‘pro’ of course is the fact the property will have a rent paying Tenant providing an immediate return.
However, be careful of the risks. We recently commenced the management of a Tenant occupied property on the day of settlement. … Read the full post »
Have you ever thought “I would buy that property if it ever came onto the market”. We recently had a client complain that I didn’t advise him of the fact that the next door property had come onto the market with another Agent. Of course we don’t have the time to monitor the status of every property in Sydney. However, as a result of this complaint I did some research … Read the full post »
I recall some property bargains from early and mid 90’s. I believe that savvy buyers have these opportunities again right now. I remember a property in College Crescent Hornsby with a $220 000 price tag. It was on Multi List because no agent could sell it as it was a triangle shape and backed the railway. At the time, it was declared a part of the ‘proposed re-zoning’ of Hornsby. … Read the full post »
In spite of the predictions of some so called Real Estate experts (e.g. Steve Keen & Neil Jenman) property prices have definitely increased. Officially home values in Sydney have increased by 5.1% and unit values by 5.4% (SMH July 18-19, 2009). Considering that the top end of the market has fallen significantly, some areas must be doing very well. If we consider some of our sales data we can see … Read the full post »
A virtuous combo of low interest rates and a tight rental market is sparking renewed interest in residential property among investors.
Interest rates have now fallen to such low levels that, for the first time in years, astute buyers are able to find a selection of “positively geared” (or “positive cash flow”) investment properties:
that is, dwellings where the rental income is greater than the mortgage repayments and other costs associated with … Read the full post »
The types of capital work deductions you can claim and what you need in order to claim them.
What are capital works deductions?
Capital works deductions are the following expenses you pay for which you can claim an income tax deduction:
building construction costs the cost of altering a building
the cost of capital Improvements to the surrounding property.
(You can only claim a deduction for the capital works on residential rental properties you built … Read the full post »
Mortgage holders can still save money before the end of the financial year by implementing tax strategies.
One of the best ways to get ahead is to legitimately maximise your eligible tax deductions before June 30.
Senior corporate affairs manager for Mortgage Choice Kristy Sheppard says mid year is the time borrowers, or those looking to buy property, should look to use any tax savings to reduce debt or increase their borrowing … Read the full post »
Accidental Damage & Wear & Tear: Some landlords have unrealistic expectations that their property will remain in exactly the same condition at the end of the lease as when tenants first move in.
The reality is though, that wear and tear on a rental property will occur over time. Landlords should expect a level of wear and tear on their rental property while it is being tenanted.
It is important to understand … Read the full post »
In light of the devastating loss of life and homes and heartbreak experienced by Victorians in the recent fires and also the floods affecting those in the north, it seemed somewhat timely when we came across these tips on a NSW Government website. There are some practical measures you can take to help prepare your home and family for an emergency situation. Any emergency will most likely involve loss of … Read the full post »
When we say ‘repairs’, we mean work to make good or remedy defects in, damage to or deterioration of the property, for example:
Replacing part of the guttering or windows damaged in a storm
Replacing part of a fence damaged by a falling tree branch
Repairing electrical appliances or machinery.
When we say ‘maintenance’, we mean work to prevent deterioration or fix existing deterioration. For example:
painting a rental property
… Read the full post »
Figures RESIDEX released recently indicate that Sydney was outperformed by all Australian capital cities last year in terms of the median sale value of properties. While Sydney suffered a 4.2% decrease in value, Adelaide increased by 4.7%. Fewer sales were made in Sydney than the smaller cites of Melbourne and Brisbane. Even Adelaide’s turnover was about a half of Sydney’s. However, RESIDEX predictions for the future put Sydney on … Read the full post »
How does a residential property investor plan for the ‘worst-case-scenario’ of being forced to sell an investment property quickly due to unforseen personal circumstances? Most residential property investors are in for the long haul; they intend to hold their purchase for a minimum of ten years and usually for a lifetime because their main motivation is to provide financial security for their retirement. At the same time their long-term … Read the full post »
By outlaying a bit of cash to make your investment more appealing than the next guy’s, not only will you have a top quality tenant paying a premium to rent your property, you will also gain taxation benefits. When tax time rolls around and you receive your refund, you will find that the depreciation allowances on such improvements will have increased the amount you get back. For instance the first … Read the full post »
Choosing an investment property is a completely different prospect to choosing a home. A home is an emotional purchase based on any number of individual imperatives. An investment property, on the other hand, is simply a commercial prospect. So it’s a matter of dropping your lifestyle hat and donning your financial cap when prioritising your criteria. First and foremost, an investment property should be tenant friendly, meaning it should … Read the full post »
Many mortgage holders may be “oblivious” to the fact they have to ask their bank for an upfront interest rate saving, according to consumer group Choice. When interest rates go up, banks automatically reset repayment levels higher. But when rates come down, borrowers need to contact their bank to instruct them to reduce repayments.”You have to notify them for the [repayment] rates to fall, otherwise they keep charging it at … Read the full post »
Choosing an investment property is a completely different prospect to choosing a home. A home is an emotional purchase based on any number of individual imperatives. An investment property, on the other hand, is simply a commercial prospect. So it’s a matter of dropping your lifestyle hat and donning your financial cap when prioritising your criteria. First and foremost, an investment property should be tenant friendly, meaning it should … Read the full post »