Homes are one of the biggest investments that one can make, and for homeowners in Brisbane, investing in rental properties have long been a popular choice as a way to generate additional income.
In this post, we will outline some of the top reasons why you should consider investing in rental properties, and why it is such a great option for so many people.
This refers to the money you receive when you lease the property to a tenant. Rental income can be one of the best forms of passive income, because it does not require any active participation on your part.
Depending on the size of the property and the cost of your loan repayments (if any) your rental income can cover most if not all of the expenses form that property.
Capital growth is when the value of a property rises over time, and therefore increases the owner’s personal wealth. Over the past 25 years, the value of Australia’s home’s have increased by over 400%. This is one of the main reasons people invest in real estate and rental properties.
Owning a rental property allows you to take advantage of some significant tax benefits. Many of the costs and expenses of owning a rental property may be tax-deductible. These include advertising for tenants, property management fees, repairs and maintenance.
No Specialist Knowledge Needed
Compared to other investments such as shares, no specialist knowledge is required to invest in property. However, it is still important to do your research, as not all properties are created equal, and it will take some knowledge and understanding to determine if a property is worth the investment.
It is a Relatively Stable Investment
Like any industry, it does have its ups and downs, but owning rental properties have proven to be a very stable investment when compared to other markets.
This is due to the fact that the population is growing and property is always in demand – whether to purchase or to rent.
Why You Need A Rental Property Accountant
Renting out your property might seem like an easy way to make some extra income. However, when you have invested in multiple properties, it is a serious business endeavour and should be treated as such.
This means that you need to make sure your financial records are in order. By engaging in the services of a rental property accountant, you will ensure that you are in full compliance with your taxation obligations and ensure that your investment is running smoothly.
Leave It To The Professionals
Even if you’re not investing in multiple properties, it is still highly recommended that you engage the services of investment property accountants. As well as ensuring that your taxes are up to date and correct, this will allow you to save valuable time when it comes to accounting requirements. Also, consider getting professional help developing a business plan for your real estate investment.
Affinitas is a Brisbane based investment property tax accounting firm, dedicated to helping you get the most out of your investment while ensuring that you are not left dealing with any nasty surprises. For more information, get in touch today.