Much like the 1st of January has us reevaluating the past twelve months and setting personal goals for the coming year, the new financial year is the time to do this for our finances.
After consulting with accountants and submitting tax returns you should have a clear understanding of where you stand financially. Now is the time to review your plans, make any changes and set goals. Set yourself up for success by looking into these things:
Are you using the best accountant?
A good accountant can be the difference between stressfully, flying blind and reaching landmark goals, thanks to great advice. Trust is the number one in the world of accounting but you should also be looking for key traits and behaviours from your account that will push you to be successful.
Your accountant should be working out a budget to help you achieve your goals from day one. Regular check-ins throughout the year to ensure you’re on track or if you need to reassess your situation and that your paperwork is being collected correctly should be happening. Your accountant shouldn’t be waiting for deadlines, they should be strategic and responsive.
A few things you should ask yourself when assessing your accountant:
- Are you happy with your accountant?
- How does the cost compare?
- Is your accountant helping you set and achieve goals?
- Is the end of financial year process made easier by using your accountant?
- Are you able to get in contact with your accountant easily?
- Are you scrambling at the end of the year to gather the information you need to share with your accountant?
Are you getting the best value from your property manager?
Whether you have one, two or multiple investment properties, having them all under one roof makes sense. Your property manager should be there to make your life easy.
- The first question you should be asking is, what are you paying?
Many real estate agencies or property management organisations, ask for a percentage of your monthly rent. This model rewards agents with higher value properties and can mean that properties with a lower rental income can be neglected.
A fixed price model ensures that each and every property is seen as equal and property managers divide their time amongst their portfolio evenly. :Different charges a standard $100 per month fee which has seen some owners save thousands of dollars a year. See what you could save with our free calculator.
- The second question is, what are you getting for that fee?
Have you looked at what is actually included in your property management fee? We have reviewed hundreds of agreements and found that many only include a lease take over and routine inspections in the monthly fee. More often than not property owners are expected to pay additional fees for almost everything!
A good property manager should be orchestrating in the background. The beauty of :Different’s 24/7 web portal is that your information is accessible at any time. No more wasting precious time with distracting phone calls and emails.
The Owner Portal allows owners to see the progress of maintenance and inspections, with videos and photographs at the click of a button. And, come tax time all of your investment property expenses are in one place.
"A fixed price model ensures that each and every property is seen as equal and property managers divide their time amongst their portfolio evenly"
Setting financial goals – and sticking to them
New financial year, new you! What does success look like for you for 2019/2020?
Perhaps you’ve been thinking about renovating an existing investment property? Remember when choosing paint colours and other cosmetic finishes that it’s best to keep it neutral. You won’t be living in the property and you want to make it a place that your tenants can make their home.
Think about refreshing your property with a ‘smart’ makeover. Technology is an exciting point of difference that will make your property stand out from the crowd. Looking for some tips? Check out our post on 4 gadgets to get your smart home started.
Set up a Tax Depreciation Schedule (TDS)
If you own an investment property and haven’t set up a depreciation schedule yet, get onto it now! You could have hundreds, even thousands come tax time. Tax Depreciation Schedules must be set up by a professional and can cost anywhere from $300 – $1000 (all of which is claimable).
Depending on when the property was built, you can claim depreciation from the cost of the build as well as renovations. This part of the TDS is the Capital Allowances deductions.
The Plant and Equipment Items deductions allow property owners to claim on a wide range of assets from carpets to security systems. If you purchased your property prior to 9th May 2017 you can claim the deduction on all assets. If you purchased your property after 9th May 2017 you can only claim the depreciation on assets you have installed yourself, nothing installed by previous owners.
Have you got some burning property questions you’d like answered in one of our blog posts? Email us at email@example.com and let us know!