So you’ve purchased your first investment property and things are going well, should you buy another one?
At SC Tax Depreciations on the Gold Coast we can review your investment portfolio and advise you on the best options for you.
It is fair to say there are a lot of negatives associated with purchasing a rental property in a low socio-economic area of town. Some of the obvious pitfalls are tenants failing to pay rent, which then turns into a constant battle for you chasing it. You may have a high turnover of tenants and the property may be damaged by these tenants. You will have to deal with the task of evicting bad tenants. The bond you can ask for may not even cover repairs if tenants walk.
Compare the above scenario to a nice home in a good neighbourhood, where most residents are probably homeowners. You will attract renters with better regular income and this will generally ensure that rent is paid on time and, if you have purchased well, the tenant will want to stay long term so your tenancy turnover will be a lot less. In this scenario the property is usually well maintained and the tenant will leave the property in good condition when they do vacate.
All of our customers say that they are looking for a better quality of life and are hoping that their investment properties can provide this. There are pitfalls for the uneducated. Quantity does not always lead to quality and although you may have a large portfolio – the life of leisure you were hoping for may be taken up with chasing tenants, repairing properties and taking people to court – all very stressful things to deal with on a daily basis. If you are looking for investing in property to set you up with a good quality of life, you need to pursue good quality deals, not just a quantity of deals.
Quality deals in investing are ones that advance you in your goals. They take you in the direction that you want to go. Many investors start buying homes with absolutely no idea of what they want to accomplish, and no goal in mind with investing. As a result, they buy properties that look like a good deal and often get pulled in directions they never intended to go.
Work out where you want to be in 5 years or 10 years, as your life goals will drive your choices. You will find that you may need to make sacrifices to achieve your goals. But you do need to be careful not to sacrifice the important things in life. If you are pursuing investing to achieve a better quality of life, focus on quality deals and not quantity.
A depreciation schedule offers the investor a smart way to manage their assets. SC Tax Depreciations qualified and experienced Quantity Surveyors can help you make sure that you are not only claiming the tax depreciation that you are entitled to, but that you also maximise this return.
In today’s world, we all live very busy lives. No one wants to go through the hassle of working out tax depreciation values, schedules and deductions. That’s where our team comes in. We can help make the process of maximising your investment property’s tax depreciation deductions simpler and easy. Call us today to see how we can help you.