Archive for the ‘Investing in Property’ Category

There’s no shortage of expenses for a rental property that are usually claimable as a tax deduction with the following list being supplied by Aviate Property Group:

• Advertising for tentants
• Bank charges
• Body corporate fees & charges
• Cleaning
• Council Rates
• Electricity & Gas
• Gardening and Lawn mowing
• In-house audio/video service charges
• Insurance (building, contents, landlords and public liability)
• Interest on Loans
• Land Tax
• Lease document expenses (preparation, registration and stamp duty)
• Legal expenses (excluding acquisition & borrowing costs)
• Mortgage discharge expenses
• Property agent’s fees and commission
• Pest control
• Registration
• Stamp duty
• Quantity Surveyors Fee’s
• Repairs & Maintenance
• Secretarial and bookeeping fees
• Servicing costs : for example a call out fee
• Stationary and postage
• Tax related expenses
• Telephone calls and rental
• Travel and car expenses (Rent collection, inspection and maintenance of property)
• Water charges

You would need to check with your taxation adviser to make sure that this applies to your individual circumstances but this list gives an idea of the expenses that may apply.

Have a look at see if you may be missing out on claiming.

 

A recent survey by the Real Estate Institute of Queensland has, perhaps not unexpectedly, revealed that the search for capital growth remains the number one reason for people to invest in real estate in Queensland.

The results show that the percentage of property buyers who bought for investment purposes during 2010 was 13% and whilst this was a long way down on the 40% achieved in 2o03, the REIQ believes that there are tentative signs that this is starting to change after a relatively quiet 18 months on the investment front.

“With stable rents, increasing demand and less pressure on property prices, there are plenty of opportunities currently available for investors to enter the market.” said REIQ managing director Dan Molloy.

A simple enough question that has taken quite a bit of digging around to get an answer!

The recent increases in water usage charges in Queensland has prompted many investors to question whether they have the right to charge their tenants for the water that they use.

There are three parts to the answer:

1. the property must be individually metered for water,
2. the property must be certified as water efficient by a plumber, and
3. the lease agreement must state that the tenant must pay for water.

The first point is the most important one. If you decide that you do wish to pass on the charges to your tenant, the first thing to check would be whether the property is individually metered and although this shouldn’t normally be an issue with houses, it may not be as straightforward with duplexes and townhouses. If it is not individually metered, the cost of the water usage cannot be passed on to the tenant apart from the standard excess.

You should also talk to your property manager about the practicalities of introducing a charge for the water usage.

The next step is to have a plumber certify that the property is water efficient. There is a form available that can used by a plumber to provide this certification but we have been able to secure a quote from Jason Robinson of Robinson Plumbing & Gas Fitting for providing this certification but the cost does depend on what needs to be done.

As a general guide, Jason has indicated a cost of $195 to test the property and issue a certificate if everything is in order. He is also able to advise the cost of equipment that may be required such as aerators, Dual Flush cisterns,  Tap Basin set and Mixer Taps as he is well aware of the requirements and is able to inspect properties from South Brisbane to Burleigh on the Gold Coast. He can be contacted on 0415 905 094.

Keep in mind that the Water and Sewerage access charges are no longer charged with general rates levied by the relevant council but are now included with the water charges and it is our understanding that these access charges must be met by the owner and cannot be passed on to the tenant.

This article has been provided based on our interpretation of the legislation that applies.

Terry Ryder from www.hotspotting.com.au has just released a fantastic story about the role that educational facilities and health facilities have in boosting a property market.

In this article, Terry quotes a number of locations throughout Australia but one that perhaps could be on this list is the central Gold Coast area around the new Gold Coast Hospital which is, of course, just down the road from the huge Griffith Uni.

Either way, the tips that Terry has outlined in this article are valuable ones to think about when selecting potential investment property locations. The full article can be read here.

A property manager can have a huge impact on the success of an investment property and it is important to make sure that you have chosen one that will look after you.

Aviate Group has just published the following list of ten questions that you should be asking any prospective property manager:

1. Tell me about the local rental market now and where it’s heading in the near future?

2. What is the process for selecting and screening new tenants? Have they verified that the tenant has not been blacklisted via TRA (Trade Reference Australia)?

3. Do you/ or does your agency have a tenant database? If so, how many tenants are on it and how will you use the database to find the best tenants for my property?

4. How often do you carry out inspections? (Should be after the first three months and every six months thereafter).

5. How detailed are your inspection reports? (Many agents provide photographs these days in addition to a written report).

6. What is the process for dealing with repairs? Do you have good relationships with tradespeople and do they offer discounted rates?

7. How often will you review my rental returns? What is the process for lease renewals and rental reviews with existing tenants?

8. What is the process for vacating tenants and final inspections to ensure my property is in excellent order to re-let?

9. Do you have any testimonials from current landlords? Can I speak to any of them?

10. What are your management fees? Are there any other fees? Are you negotiable for multiple listings?