Ways to add value

Hi all,
What measures you would do to improve the value of a 9 year old 3 bed 2 bath town house and also can give a tax reduction in the same year?
PM suggested new carpets, extra split AC to upstairs or doing an putting up a new turf.
thanks.
# add value

 

What’s the purpose for adding value?
Do you want to increase the rental return?
Refinance to draw equity?
On first impressions it seems like you want to spend money for the purpose of getting a tax deduction.
It may work out better overall to not spend any money at all.

 

Thanks you got it. Yes it is for tax advantage & i was hoping that would make the property more competitive in the rental market in future.

 

Your property manager is not a tax accountant. Allowable immediate deductions have changed recently. Before rushing out and spending money, check what is deductible versus depreciable vs nothing at all with your accountant.

 

I wouldnt do anything that doesn't need doing. Certainly wouldnt spend money for a 'tax advantage'.

 

9 yrs old - needs painting If you haven't already done lately.

If you're purely after the tax deduction this year, pay your PM more.

 

This is GOLD!

 

Maybe it is time to replace curtains and blinds if they are sun-damaged. No idea at all about what effect this will have on tax, we don't consider the tax implications, only whether it will attract excellent tenants.

 

Tax deductions should be the side result of improvements, not the reason for them.

Even on the top bracket you have to spend $1 to get 50c back. Hardly a sound financial decision.

And that is assuming the improvement is fully deductible - most will only attract depreciation benefits, less in the short term.

And don’t take tax advice from your PM unless he/she is a qualified accountant.
Marg