Here’s an EOFY checklist for property investors
The ATO is going to be keeping a close eye on property investors this year, so here’s a checklist of what you need to have ready before submitting your tax return this year, as well as how to conduct a more general check-in on your portfolio.
Preparing your tax return
If you use HPA as your property management team, we’ll provide you with a detailed end-of-year report that you can then give to your accountant. Remember that our property management services are an expense that you can claim as a tax deduction.
Our report will list rental income from your investment property and any expenses such as maintenance requests organised through our office and charged to your account. If you also arranged for work on the property yourself and have other related expenses such as insurance, you’ll want to collect the receipts for these as well.
You’ll also need to gather your mortgage statements showing all interest, and a depreciation schedule. You can get this from a quantity surveyor and it should include all the depreciable assets in the property, including the building itself and fixtures and fittings.
Review your assets
Once you’ve collated all of your paperwork, it’s time to review your investment and its performance through the year. It’s always worth thinking about whether you should hold or sell your property, or if it’s time to add to your portfolio.
Analyse your cash flow and rental returns.
We are always happy to discuss with our clients any potential changes to rent and current market rates, too. For most tenancies in NSW, rents can only be increased once every 12 months, so now is the perfect time to take stock and see whether an increase may be feasible and if so, how much.
Plan for any works in the new financial year
Another thing to ask yourself is if there are any small improvements you can make to the property that will give you a higher return on your investment. Your accountant will be able to explain to you what can be claimed straight away and what are capital works that are claimed over several years.
Review your interest rate
Although as we all know interest rates are an ongoing concern for many, it’s worth reviewing how much yours has crept up and if there’s any possibility of either talking to your bank or moving to another lender – a mortgage broker will be able to help you here.
Is it time to add another investment?
If everything is looking good, you might want to consider buying another investment property to add to your portfolio. We can show you what’s available and what might be coming up soon.
Are you looking for a property manager?
Having your property professionally managed takes all the pressure off you as we do all the work for you. And EOFY can be a good time to hand over your property to a manager if you’ve been doing it yourself, or if you think it’s time to look for a new one.
As a family-run business, we have years of experience in property management on the Northern Beaches. Some of our current clients have been with us for many years and know that we have an excellent understanding of the Sydney real estate market.
Please feel free to get in touch for a chat about your needs and how we can assist you in achieving your property investing goals.
Want to start the new financial year off right? Talk to us
If you’re looking for a new property management team or you’re thinking about adding to your portfolio and would like to hear about our upcoming listings, please give us a call.
