Investment properties in Sydney are becoming a way of life for many people who wish for added financial back up in retirement years. This is good planning for those who can do it, especially if it is in the hands of a property manager. Property managers take care of everything for you, from advertising your premises for rental, screening prospective tenants, having the tenancy agreement signed, rental collection, needed repairs and regular property inspections. They can also arrange landlord insurance on your behalf, which helps with expenses for damage and to defray legal costs incurred through defaulting tenants.
Investors in Sydney also need the services of a good accountant to make sure all allowable deductions on their real estate are claimed. While the average individual has some idea of deductions, without an accountant they will be missing out on many benefits. There are taxable deductions for yearly depreciation of premises and fittings, the amount of which depends on the age of the home and purchase price. It also depends on the depreciation schedule chosen, (long or short term) as to how high the deductions are at first. In the event of a natural disaster depreciation for damage to the investment can be claimed, the amount depending on the residual value of the investment and whether or not it is insured.
The cost of property management is tax deductible, as is the cost of any repairs to the fixtures in the home. Fixtures can include installed dishwashers, stoves, hot water systems and carpets. If the property includes a swimming pool, the cost of replacing the pump is also tax deductible. If you have advertised your home for rent in order to have it tenanted that is another deduction you can claim. Other claims that can be made are for pest control, carpet cleaning, and rates for water use as well as council rates. Also if the purchase of your investment has involved getting a home loan, fees for setting it up and the interest on the mortgage is deductible as well as bank fees on the account used for your investment. Even property insurance can be claimed as a tax deduction.
There are so many things to be aware of when tax time comes around. Instead of doing it yourself and missing out on possible deductions that can be a sizeable amount, get an accountant to do it for you and benefit through his knowledge. Teaming up with property management and a good accountant is the best way to ensure the success of your investment.