hello

am new to this forum .. just signed for my first investment property ,, have no much information about dealing with all this,, but if you have and advice / info to offer you welcome ,,

 

Welcome Ayman! Congrats - what did you buy?

 

a town house in epping vic ,,, looking to know how to manage it ,,, like if to rent privately or with real estate agent ,, or how to deal with the taxation ,,, etc,,,,

 

Ah heaps of questions Best idea is to read the forums - there's a search button in the top right and you'll soon get an idea of what you need to know.

 

Thanks for your reply,,,
I was chatting with one of the dads at my son karate lessons and he told me about the propert
depreciation schedule with a company called BMT Which helped him regain more tax return over his property investment,, if you have any idea or experience with this,,

 

don't forget to buy Landlord insurance

 

Welcome Ayman

It is a very bad idea to self-manage. There are too many laws to learn. It is better to have a professional manage for you. The price is very cheap for all the work they must do. Also your insurance would be more expensive if you try to self-manage because the insurance company knows there is a high risk things would go badly under this arrangement.

Insurance is an absolute must. The bank that is lending you the money for the property will require that you take out insurance and provide them with a copy of the "Insurance Certificate of Currency" with the bank listed as "Financial Interest" on it. The insurance company can give you the "Insurance Certificate of Currency" after you pay for the policy. You will need building insurance, and also a small amount of "contents insurance" to ensure that things like carpet and window coverings (curtains etc) are insured... since often they are not covered under the building insurance. You will also need Landlord Insurance. Some insurers will do it as one big policy. Some will do two separate policies. With all this said, if your townhouse is in an "owners corporation", the owners corporation might pay for building insurance for all the buildings in the complex, in which case you would only need contents insurance and landlords insurance. If you are unsure, ask the solicitor/conveyancer that is assisting you with your property purchase.

Yes, if the property is quite new, absolutely get a depreciation schedule. Companies such as BMT or Depreciator can assist you with this. The cost of producing the schedule is a tax deduction. Also they will give you a "depreciation schedule" which is a report with a big table of numbers. One row of numbers for each financial year. Your accountant will use the row of numbers for the relevant financial year to claim "deductions" on your tax return. Essentially these numbers will reduce your taxable income and thus the tax payable.

It would also be better if you have an accountant do your tax return from now on. It becomes too complex to try to do it yourself when there is an investment property. The cost of the accountant doing your tax return is a tax deduction as well.

Hope this helps.