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Property investor tips to claim tax deductions

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NOW that the end of the financial year is approaching, it is time for property investors to turn their attention to what they are able to claim as tax deductions.

Owning an investment property can provide tax breaks for landlords.

Owning an investment property can provide tax breaks for landlords.

Below are some of the common expenses that are claimed, but for more information see ato.gov.au

Bank fees

Bank fees and charges can vary widely but usually include monthly account keeping fees, an annual fee if you have a professional package and overdrawn charges. These fees are a tax deductible expense if the account is used for the purpose of investment property.

Advertising

This includes print advertising such as newspapers, signs or through the internet for new tenants.

Management fees

Costs associated with using the services of a property manager and legal costs are claimable.

The legal costs associated with residential property are usually not major because most states have a tribunal that deals with these matters at a minimum cost and without the need for lawyers. However, commercial property disputes can be very different.

Property maintenance

This includes lawn mowing, gardening, pest control and repair and maintenance expenses. It can also include cleaning costs such as cleaning products or for hiring a professional cleaner.

Travel expenses

Costs incurred as a result of travelling to and from the investment property to inspect, maintain or collect rent can be tax-deductible.

However, to claim these expenses, the property has to be the main purpose of your trip.

For example, if you have an investment property on the Gold Coast and you travel there to inspect the property but stay a week, you cannot claim the full week’s expenses and 100 per cent of the travel costs.

You will be able to claim only a portion of the expenses as you spent only a portion of time dealing with the investment property.

Insurance

The tenant should insure their personal belongings, but the landlord needs insurance for things such as public liability, the building and contents. Some landlords also opt for landlords’ insurance to cover items such as rental loss or default.

Interest

This will be the biggest expense for most property investors. Check your loan statements and other bank documents that are related to the payment of interest on your loan.

If you have a principal and interest loan, only the interest is tax-deductible, not the principal.

To claim these expenses, keep accurate and reliable records including dates, amounts and receipts. This can be annoying at times — but the potential savings at tax time are worth it.

Source:Herald Sun

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Auction tips: Why and when you should auction

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WHEN it comes time to sell your property, the age-old argument of auction versus private treaty naturally comes to the fore.

There is no one best practice but the general consensus among property professionals is both type of housing and market confidence play pivotal roles.

Core Logic RP Data auctions spokesman Kevin Brogan crunched combined capital city data over the 12 months to November 2015 and found higher valued and more unusual properties were taken to auction.

“If you have a house in a street and there are 10 others like it, you have a pretty good idea of what it’s worth,” Mr Brogan said.

“But if it’s unique or unusual you might not be able to pick what it’s worth so you take it to auction on the proviso there’s enough interest.

“Looking at the combined capital city data over the past 12 months to November, you see the general median price of houses that sold at auction is about $950,000.

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Construction Begins On Sunshine Coast CBD

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Construction Begins On Sunshine Coast CBD

Construction Begins On Sunshine Coast CBD

Construction officially began today on a new central business district for the Sunshine Coast, which is forecast to create more than 30,000 permanent jobs in the region by 2040 and provide a $5.9 billion boost to the Queensland economy over the project‟s 20-year life.

Premier Annastacia Palaszczuk turned the first sod on the prime 53-hectare SunCentral Maroochydore development site, which promises to showcase excellence in urban design, technology and innovation, including some Australian firsts, such as automatic waste collection.

SunCentral Maroochydore‟s Chief Executive Officer John Knaggs said the unique development represented a coming of age for the region.

“The Sunshine Coast is already the second highest performing regional economy in Queensland and the fifth highest nationally,” Mr Knaggs said.

“With the $1.8 billion Sunshine Coast University Hospital due for completion at the end of this year along with the planned expansion of the Sunshine Coast Airport, the new city centre at Maroochydore will ensure we are rising to the challenge of growth, with a clear focus on jobs.

“The Sunshine Coast population has risen from 65,000 to 335,800 in the past 40 years and by 2040, well over half a million people are likely to call the region home.”

The Council-owned land would deliver more than $300 million in public space and infrastructure to the people of the Sunshine Coast.

Sunshine Coast Mayor Mark Jamieson said the site on the former Horton Park Golf Club would be transformed over the next two decades to include commercial buildings, destination retail outlets, a premium hotel, civic facilities and an exhibition, convention and entertainment centre, with 40 per cent of the new city centre site dedicated to waterways and parkland.

“This is Australia‟s only greenfield CBD within an existing urban area, which provides us with the opportunity to build from scratch, a city centre that is able to meet the needs of people both now and in the future,” Mayor Jamieson said.

“Applying our smart city framework – which includes digital solutions for the management of street lighting, car parking, water, power and signage that is detected by smartphones and other technologies, and where rubbish bins are emptied via automated underground tubes means SunCentral Maroochydore will become a nation-leading destination for innovative businesses.

“Importantly, given its significance to the Sunshine Coast, this is a project owned by the community. Independent expert analysis suggests our new city centre will grow our local economy by $4.4 billion over the life of the project.”

SunCentral Maroochydore‟s CEO said the project was vital to preventing urban sprawl on the Sunshine Coast and would deliver a viable commercial hub, public recreational facilities and an interconnected city.

“Urban sprawl has been a challenge on the Sunshine Coast for decades and SunCentral Maroochydore is about consolidating future development and delivering an outstanding city centre,” Mr Knaggs said.

 

 

 

Originally Published On: http://www.theurbandeveloper.com/

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Coast real estate experts say property still on the rise

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REAL estate identities say the Sunshine Coast market will continue to grow steadily, regardless of reports that the housing cycle has peaked.

EXPERT’S VIEW: Prices are yet to peak say local agents.

EXPERT’S VIEW: Prices are yet to peak say local agents.

Investment bank Morgan Stanley released research this week calling the peak and forecasting a slowdown in price growth, followed by a negative impact on building activity next year. (more…)

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