Whilst investing in property is a popular and successful way to build wealth for you and your family, it’s a smart decision to be prepared for any potential surprises that may arise as a result of that investment. If not managed correctly accrued expenses can build quickly.
Whilst you are working out which upfront and ongoing costs will apply to your investment, talking to a property-specific accountant about what might be tax-deductible is always a good idea before signing on the dotted line.
Some of these items may be:
- Purchase costs
- Loan establishment fees
- Mortgage insurance
- Purchase of whitegoods or appliances
- Utility connections
- Stamp duty
- Conveyancing and legal fees
- Interest on the loan
- Building and landlord insurance
- Strata fees
- Land tax
- Council Rates
- All property management fees
- Property maintenance costs
- Accountancy fees
It’s important to do your research. Talk to the Current or past Property Management firm and get copies of the Rates Notices, Body Corporate and understand the local area where you are investing. A little research now could save you thousands down the road.
