Tax Time and what that means for your property

The end of the financial year is rapidly approaching, which means it’s time for property investors to get their paperwork in order ready for their accountant.

With Covid 19 forcing most of us to stay in indoors, there is plenty of time to get organised and complete all the necessary administrative tasks vis a vis your portfolio.

Getting on with the job now will definitely put you in your accountant’s good books and ensure your investments are structured for long-term growth and success.

REVIEW YOUR INSURANCES

This task can be quite painstaking, but it can potentially save you thousands of dollars. If, for example, an insurer is affected by a catastrophic event, like a bushfire, they can increase their premiums across the board. So check that what you have still applies and is worth the money you are paying out.

REVIEW YOUR CREDIT CARDS

Do some research to discover if there are any better deals available with regard to interest rates and loyalty programs, such as frequent flyers or cashback offers.

REVIEW YOUR RENTAL PRICES

Examine the rents you get from your tenants and compare them to those that are available on major real estate websites. If you have tenants whose leases are due for renewal, be extra careful about any possible increases, particularly as the effects of the Covid-19 crisis start to become more widespread.

REVIEW YOUR LOAN INTEREST RATES AND PAYMENT OPTIONS

With interest rates at an all-time low, have a think about what would suit you better — fixed or variable. There are some excellent fixed rates available at the moment but remember they are subject to market fluctuations.

With so many people facing challenges, thanks to Covid-19, you should also evaluate your own options and draw up a contingency plan, should you be unable to pay your mortgage or a tenant can’t pay their rent.

*This information does not constitute financial or legal advice. Please consult your professional financial and legal advisers before making any decisions about your investment portfolio.

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