Month ending May 2021
A message for our clients
Is this year going by fast or is it just me? We are halfway through the year already. We hope all the wonderful mothers out there had a beautiful Mother’s Day and were spoilt.
Some of you may remember Elaine Lee; she was our wonderful Property Manager who started working with us just before COVID hit our shores last year. Earlier this year Elaine moved her career path to Sales to give herself the opportunity to experience that side of the industry. She soon realised that her passion for Property Management was too strong and has recently re-joined our team as Junior Business Development Manager (BDM). Working alongside Leon Zhang, our senior BDM, Elaine has quickly learnt and adapted to her new role. In the short time she has been with us she has shone and has already received wonderful feedback from her new clients.
During the month of May, we were busy housing 14 new renters and welcomed 17 new rental providers to our business.
Now is the time to start preparing for the End of the Financial Year and tax time. In July, we will issue an End of Financial year statement to you with all the information your accountant needs. There will be no need to look for statements or invoices, we collate this all for you, at no cost.
Stay warm and keep well.
Quote of the month
“The bad news is time flies. The good news is you’re the pilot.”
— Michael Altshuler —
Testimonials on Elaine Lee
 | I’ve had a great experience with Elaine Lee! Referred by a friend as I’ve never had a dependable property agent. She have helped with all the minute details for what’s required as an owner and promptly respond with all necessary detail condition reports and any enquiries. Lastly quick in getting new tenants for my property, great attitude with awesome character – Chong Han Ong – Elaine Lee is a very professional property manager. She has been very helpful, knowledgeable and always ready to answer our queries. My husband and I are grateful for her support during the time she was managing our property. – Lorraine Yoong – |
How to Lower Tax for Your Investment Property in Melbourne
There are a number of legitimate ways to gain property tax reductions without toeing any legal lines. Here are some ways you can reduce your tax:
Depreciation of property
Take a closer look at your property. As the structure ages, it depreciates in value and tax can be readjusted accordingly. If you’re already paying lower taxes for depreciation, check the items included in the computation for the property value. There might be assets that can be included that haven’t been previously. You may be surprised because you can actually count items such as freestanding bathroom accessories, rugs, ceiling fans and a lot more. A complete list is available at the Australian Tax Office (ATO). Some people make the mistake of listing the cost of repairs instead of the value of depreciation and these are two separate items. Keep in mind that renovations are considered as cost of capital and aren’t considered as tax-deductible whereas repairs are tax deductible.
To maximise your property tax depreciation, we recommend you call BMT Tax Depreciation on 1300 728 726 or visit their website https://www.bmtqs.com.au/
Negative gearing or net loss
We expect our investment property in Melbourne to be earning capital growth but that’s not always the case. There are situations where it takes time before you earn a profit and only clever property selection will ensure that you have bought an investment grade property that will go in value. To aid you through this time until you start to earn a profit or decide to resell, you can declaring the negative cash flow against income tax to get a tax reduction. Always consider before buying if you strategy should be capital growth or cash flow as this can have a substantial impact on your weekly outgoings.
Other expenses considered as tax-deductible
Yes, you actually get tax deductions for spending on items related to your assets. Real estate is expensive, so this is welcome news if you own an investment property in Melbourne. These expenses cover the maintenance of the property such as garden and travelling for property inspections. Be mindful though, that it can take many years before you can receive your capital works deduction. Renovations don’t provide an immediate tax deduction, as they are aligned with the value of the depreciation instead. Capital works deduction rates differ according to when the construction began and the type of construction or extent of renovation.
Rental properties guide
This guide will help you, as an owner of rental property in Australia, determine:
– which rental income is assessable for tax purposes
– which expenses are allowable deductions
– which records you need to keep
– what you need to know when you sell your rental property.
CLICK HERE TO ACCESS THE GUIDE
Congratulations to our ‘Tenant of the month’ for May
Congratulations to our tenant of the month, Joan & Kurt Saifert. We hope that you enjoy the $50 gift voucher.
This is our way of recognising and thanking the wonderful tenants who take the time and effort to maintain the property as if it were their own. And YES, there is a $50 gift voucher reward for our monthly winners to enjoy! You will also receive a ‘Tenant of the month’ certificate which you can use if you need a reference check for future rentals. If you meet the below criteria, you will be in the running to be selected as Ray White Burwood’s ‘Tenant of the month’.
NO RENT ARREARS—Please ensure that your rent is paid promptly on or before the due date.
LEASE OBLIGATIONS—Must be met at all times, including ongoing presentation of the property, prompt reporting of maintenance, and regular maintaining of the garden/lawns.
ROUTINE INSPECTIONS—If you have had a routine inspection conducted during the month and your home and garden is presented in immaculate condition.
