With 2020 upon us, countless landlords could use the summer break to make resolutions aimed at maximising the value of their property investments.
Start by asking yourself whether 2019 is the year to expand and diversify your property portfolio? Alternatively, it might be time to visit your investment asset to check its condition for yourself as part of a routine inspection organised in conjunction with your property manager. The beginning of the year is also an excellent opportunity to review the weekly rent and lock your tenants into a new lease.
If the property requires repairs or upgrades following your visit get in now rather than waiting for the end of the financial year to ensure you maximise your 2019/2020 tax breaks. Likewise, if you don’t have a deprecation schedule for your property, contact your accountant or a quantity surveying firm now rather than waiting for June. A depreciation schedule enables landlords to claim against the reduction in the value of items such as carpets, curtains, stove cooktops, some light fixtures and showerheads. Moreover, almost 50% of landlords fail to make depreciation claims against their investment properties, potentially missing out on thousands of dollars in tax deductions.
The catastrophic start to the year with bush fires ravaging large swathes of Australia’s east coast is also a wake-up call for landlords to check their insurance coverage. Some reports have put the level of underinsurance among landlords at a staggering 80%. To check whether you have enough cover contact your insurer or Our Broker on 02 8232 0327.
The new year is also the perfect time to make sure you’re not paying too much in mortgage repayments. With the current record-low rates, many institutions are willing to offer very competitive rates on their investment loans. This competition has created opportunities to save on home loan interest, and a mortgage broker such as Our Broker is well placed to help you get a better rate from your bank, or a competitor if your current lender doesn’t come to the party.
For more tips on maximising the value of your investment property, contact your Raine & Horne Property Manager today.