In this newsletter we cover important property management topics to keep you informed and maximising your rental income and optimising your capital growth.
DO YOU HAVE FAMILY OR FRIENDS STRUGGLING TO ENTER THE PROPERTY MARKET?
Interest rates are the lowest they have ever been, however, many people are still finding it challenging to purchase a property on their own, especially the younger generation. If you have a family member or friend looking to enter the property market or eager to climb up the property ladder, the solution could lie in buying property with family and friends or utilising current equity in the family home or investment.
While there is always the chance of unforeseen issues with those close to you, there are also many benefits from teaming up with your loved ones to acquire a new property.
Pros -There is a better chance of home loan approval - Having two or more people on the home loan application can facilitate the process and increase the chances of being approved as two incomes are generally better than one...
Cons - Unpredictable circumstances - A fall out with a family or friend is not uncommon, so it is important to remember to separate business from pleasure and not let personal issues get in the way of your property ties...
WHAT IS CAPITAL GAINS TAX?
LIKE MOST TAX AND ACCOUNTING RELATED MATTERS, CAPITAL GAINS TAX CAN BE COMPLEX AND DAUNTING FOR SOME. Capital gains tax is tax on the profit made on the sale of any capital item. Capital gains tax applies in the financial year a capital asset is sold. It is important to note that the date of the actual contract is the purchase or sale date for capital gains purposes, not the settlement date. This becomes relevant for sales made towards the end of the financial year, which settle in the next financial year...
DO YOU OWN ANOTHER INVESTMENT PROPERTY?
Consolidating the management of all your investment properties to the one agent can streamline the communicating, reporting and accounting process.
If you have another investment in our area, please feel welcome to talk about the further advantages with your property manager.
ARE YOU CONCERNED ABOUT YOUR LAWNS & POOL BEING MAINTAINED
This is a real concern for many landlords. Will the tenant maintain the lawns, gardens and pool (if applicable) to our high standards?This is one of our management roles that we are constantly focused on to ensure the internal and external of the property is well cared for. However, if you want added peace of mind, you may like to consider including lawn and pool care as an inclusion to the weekly rent and then engage a professional. It can be a win for the busy tenant and they may be more attracted to renting the property and you as the property owner will know that the outside of the property is being looked after.