Tag Archives | Real Estate Paddington

Property Investors Save Big $$$ With These Tax Deductions…

Property Investors Save Big $$$ With These Tax Deductions…Owning an investment property not only offers the opportunity to build wealth but extends itself to the opportunity to save tax also. These tax savings can go a long way towards assisting with your investment property cash-flow requirements and assist in paying off your investment property sooner.

Being prepared is the key to obtaining all of your entitled tax savings. Many investors don’t keep on top of paperwork and legal requirements, nor do they seek to understand available deductions associated with investment property.

Here is a list of deductions that may be available to property investors:

  • Advertising for Tenants
  • Bank Charges
  • Borrowing Expenses
  • Capital Works
  • Council Rates
  • Depreciation of Assets
  • Gardening and Lawn Mowing
  • Insurance
  • Interest Expenses
  • Land Tax
  • Legal Expenses
  • Body Corporate Fees
  • Pest Control
  • Agents Fees and Commissions
  • Repairs and Maintenance
  • Stationery
  • Telephone Expenses
  • Related Travel
  • Water Charges

Keeping accurate records from the outset is a golden rule to maximise your tax savings. Always keep receipts and source documents and don’t let paperwork “pile up”, rather file it promptly and efficiently. Check with your tax accountant to make sure you are claiming all that you can legitimately claim.


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Plan for Your Property Investment Success

Plan for Your Property Investment SuccessThe key to building a property portfolio of substance is discipline and sticking to a plan.

Understanding how property investment works is vital, but having a plan and taking action are equally as important.

Tips for building a portfolio:

  • Design a crystal clear blueprint. Document it, and make sure it is workable. Don’t be scared of stretching beyond limiting beliefs. Many people build a portfolio quickly.
  • Develop a network of trusted advisors. A property coach, and a handful of trusted advisors are all helpful.
  • Review your plan and portfolio regularly. Quarterly as a minimum.
  • Understand property investment. Research.
  • Learn about your finance options and position yourself to act.

If you are considering your options on building a property portfolio please contact us, as we would love to help.


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Queensland Comes out on Top for Interstate Property Investors

Queensland Comes out on Top for Interstate Property InvestorsQueensland appears to be the destination of choice for interstate property investors, according to recently released data from landlord insurer Terri Scheer Insurance.

Of the 20% of landlords on its books that own rental property outside of their home state, 51% had a brick and mortar investment in Queensland. Next up was Victoria (14%), followed by New South Wales (12%), and South Australia (11%). The ACT and Tasmania brought up the rear with 2% each, followed by the Northern Territory (3%) and Western Australia (5%).

“With Queensland the preferred destination for interstate property investment, this research seems to be pointing them towards the sunshine state,” says Terri Scheer Insurance manager, Carolyn Majda.

“They might also be investing in property they can rent now and holiday in or retire to later.”

And while interstate property investors were reluctant to buy in the ACT or Tasmania, landlords based in these two regions were the most likely to look elsewhere for their rental property purchase.

According to the Terri Scheer Insurance figures, 57% of Canberra’s property investors own a rental property outside of their home turf, while 50% of Tasmanian landlords chose to buy on the mainland.

Next up were landlords in the Northern Territory (39%), New South Wales (28%), Western Australia (27%) and Victoria (23%).

Queenslanders (9%) and South Australians (10%) were the least likely to invest in property interstate.

“While it’s difficult to gauge this from the figures, it’s possible that some people are moving interstate for work and lifestyle reasons but keeping their existing properties to generate rental income or in case they intend to return,” says Majda.


Source : Your Investment Property (24 August 2011)

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How do I give a Tenant Notice to Leave Without Grounds?

How do I give a Tenant Notice to Leave Without Grounds?A lessor rents out his investment property on a fixed term agreement which is due to end on 31 December. He decides to allow his student son to move into the property, which is near the university, on 1 February.

The lessor would like the current tenants to move out on 31 January, and he gives them written Notice to leave on 30 November.

After the fixed term agreement ends on 31 December the agreement becomes periodic, meaning the tenant can leave at any stage by giving two weeks notice.

When a lessor ends a tenancy agreement without grounds, they must give the tenant two months notice to leave. This applies to fixed term as well as periodic agreements.

The Residential Tenancies and Rooming Accommodation Act 2008(the Act) allows a tenancy to end for a number of different reasons, such as non-liveability or abandonment. The Act also allows a tenancy to be ended ‘without grounds’ if the party ending the agreement does not give a specific reason.

A lessor cannot end a fixed term agreement without grounds before the agreement’s end date, unless the tenant agrees.

Fixed term agreements can end only when either the lessor or tenant gives written notice. When the fixed term agreement moves beyond its agreed end date – and if neither party has given notice – it becomes a periodic agreement.

A lessor or tenant can end a fixed term or periodic agreement. When a tenant decides to leave the rented property, they must give the lessor two weeks notice. However, if it is a fixed term agreement, a tenant cannot leave before the agreement’s end date unless the lessor agrees.

If a fixed term agreement is for a period of six months, the lessor and tenant should be aware that negotiations about continuing the tenancy agreement may sometimes begin three months before the end of the tenancy.

When a lessor presents a tenant with a Notice to leave (Form 12), giving the required two months notice, the tenant might choose to find a new rental property immediately, but in a fixed term tenancy, the tenant cannot leave before the agreement’s end date unless the lessor agrees.

More information about ending a tenancy without grounds is available on the http://www.rta.qld.gov.au/

Source : RTA Update (03 August 2011)

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Landlords vs Tenants…Free Help to Resolve Disputes!

Landlords vs Tenants…Free Help to Resolve Disputes! Whether you’re a lessor (landlord), agent or a tenant, disputes can occur over everything from money matters to repairs. The RTA encourages people to communicate with each other to resolve such issues. But if an agreement cannot be reached, the RTA offers a free dispute resolution service.

Dispute resolution team leader, Lalita D’Netto, said the service helped to re-open the lines of communication. “Our conciliators help people find common ground,” Lalita said. “Most people are reasonable when they are made aware of the issues and sometimes it helps to talk through concerns with an impartial person.”

RTA conciliators cannot instruct people what to do, nor can they make decisions for them. Lalita said most people want to resolve the dispute rather than having the Queensland Civil and Administrative Tribunal (QCAT) make a ruling on their behalf.
The RTA conducts dispute resolution in three ways:

  • three-way telephone conference
  • face-to-face conciliation
  • telephone shuttle: where RTA conciliators hold separate telephone enquiries with each disputing person

The conciliator will choose the best way to deal with the dispute depending on the circumstances involved. The most common disputes occurred during a tenancy and at the end of a tenancy (mainly involving bond refunds), Lalita said. If the dispute cannot be resolved, either party can lodge a Dispute resolution request (Form 16) with the RTA. Once the RTA receives the form, it is registered, a conciliator is allocated and letters are sent out to each party inviting them to take part in a telephone conference.

Lalita said people who wanted to use the dispute resolution service should have prepared documentation like receipts. She said disputes were assessed depending on urgency but most cases were dealt with within 28 days.

If a resolution cannot be reached, a Notice of unresolved dispute is issued to the person who lodged the Form 16. When the issue relates to a bond dispute, under the legislation the party has seven days to apply to QCAT and notify the RTA of their intentions.

People applying to QCAT must lodge the RTA’s Notice of unresolved dispute with their tribunal application. The exception to this rule is if the application is classed as urgent. The RTA received over 21,000 dispute resolution requests in 2010-11. Approximately 14 per cent went on to become applications to QCAT.

Source : RTA Update (03 August 2011)

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