How to instantly increase the cash your investment properties generate
Want to make an extra several hundred thousand dollars out of your investment property right now? It’s simple – and takes just a few hours of effort. But you have to actually do the three things below. All three of them. No exceptions. Do all three and you can expect to save some serious cash.
Call a property focused tax accountant right now
The tax advantages of owning an investment property can be immense – so immense that most investors are not even coming close to claiming everything they could be. This is where a tax professional with extensive knowledge of investment property comes in handy. If you own an investment property and don’t have a depreciation schedule, there’s a good chance you are donating money to the tax man.
A tax depreciation schedule is simply a report detailing the depreciation entitlements available to you within your investment property. The depreciation entitlements can be broken into two simple categories; capital allowances, and plant and equipment items. Simply put, capital allowances mean you are able to deduct a portion of any capital works such as renovations each year since they were completed.
Additionally, you can receive a deduction for the depreciation of a huge range of items within the property considered to be ‘plant and equipment’ items. These may include bathroom accessories, hot water systems, carpets, vinyl, blinds, curtains, air conditioners, door closers and security systems, to name a few. See a professional and the benefits could be tens of thousands of dollars.
Get a new property manager that pays your rent when your property is vacant right now
Certainty Property has flipped the property management experience on its head. Did you know that it takes four and a half weeks on average to find a tenant in Sydney? In suburbs with lots of apartments it can take up to eight weeks to find a tenant! That means in Sydney you can expect to miss between four and eight weeks rent when your property is vacant.
Certainty Property will pay the rent from the date your property is vacant. If your tenant leaves and it takes two weeks to find a tenant, then we will pay you two weeks of rent out of our own pocket. If a tenant stops paying rent, we will make the payments instead. We do this because they believe that property managers should have the same incentives as property investors – and feel financial pain when we don’t achieve great outcomes. Imagine how seriously we take finding you a great tenant when we are paying every day your property is vacant!
Use our Rent Calculator today to find out how much extra rent you could be getting with Certainty Property managing your investment – we can let your agent know you’re upgrading within the hour:
Call up your bank and demand a discount right now
The comparison rate on a standard variable mortgage with CBA is 5.08% as of late July. There are plenty of reputable home loan providers with a comparison rate closer to 3%. UBank which is owned by NAB has a comparison rate of just 3.09%, whilst HSBC and Bank of Australia have comparison rates of just 3.28% and 3.36% respectively according to Mozo.
Consider some back of the envelope calculations. Let’s assume a $500,000 mortgage with a comparison rate of 5.08% payable over 30 years. The total interest payable is $475,098 over the life of the loan. Now take that same mortgage but move it to a comparison rate of 3.09% as offered by UBank with a 3.09% comparison rate. The total interest cost is $267,652. That’s a difference of $207,446. You can enter in calculations specific to your circumstances here.
Work out the numbers specific to your situation. Write down the difference in interest payments. Then call up your bank and ask why you should pay an extra however many hundred thousand to say with them for the next 30 years. They will reduce your interest rate. And if they don’t then move.
As you can see, Certainty Property does property management differently. We focus on what really matters to investors. To talk to us about maximising the cashflows your property generates and eliminate the cost of vacancies, use our online chat and a member of our team will be with you shortly. If you’re more of a talker, give us a call on 1300 577 298.
The above should not be construed as financial advice and is not specific to any individual’s circumstances.