EOFY: 5 Point Investment Health Checklist

Whether you’ve just bought your first investment property or a seasoned investor, we’ve prepared a quick and easy checklist to take the hard work out of ‘EOFY’ for all your property needs.

☑️ Is your current rent in line with the market? 

Rents fell due to COVID last year; however, it has bounced back slightly since then in certain pockets. If your lease is expiring or has already expired, now is ideal for reviewing your rent. 

☑️ Review your management fees

A good managing agent makes you money, saves you time, and protects your investment. They are worth what you pay them. 

It’s when you receive an average service when you reconsider what other providers are out there. There is no point in appointing a cheap provider if your property is vacant for weeks at a time, repairs are not organized, and the property is not being maintained proactively. 

☑️ Ensure your landlord insurance policy is current

We cannot stress enough the importance of having landlord insurance!

A landlord’s insurance in general covers you for public liability as well as tenant-related risks.

They only cost about $300-$500 per annum, and not having landlord insurance is like driving a car daily without insurance! 

TIP: Ensure you buy a cover from a provider that specializes in landlord insurance! Many providers do landlord insurance as a side gig, and many owners find out that their policy isn’t worth anything when it comes time for a claim. 

☑️ Do you have a depreciation report? 

We have found that even some seasoned investors can overlook depreciation reports and miss out on tens of thousands of dollars worth of deduction. You only need to buy it once and use it for many years to come.

A tax depreciation schedule is an ATO complying document that helps property investors unlock the tax deductions available to them.

A schedule captures the wear and tear of a property over time. The ATO classifies this wear and tear as an expense to investors, claiming a tax deduction.

Anything built after 1987 is worth having a depreciation schedule for. 

Not all accountants would recommend you get a depreciation schedule so the onus can reach out to a quantity surveyor and weigh your cost vs benefit. 

TIP: We recommend using Duotax; if you quote that you are a Metro Realty client, they will look after you for approx $495 for residential property (RRP $700). You’re welcome! 

☑️ Retrospective market value reports

You can appoint a quantity surveyor for capital gains tax purposes if you need a Retrospective market value report.

TIP: We recommend using Duotax; if you quote that you are a Metro Realty client, they will look after you for approx $495 for residential property (RRP $700). You’re welcome!

☑️ Market value appraisals

The property prices in Sydney have seen varied growth over the last few months, and it’s essential to stay informed with the value of your most valuable assets.

An updated appraisal may allow you to pursue other financial interests, sell (either downsize or upsize) or ensure that your property is adequately insured.

TIP: Contact us for a complimentary market appraisal

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Whether you are holding, selling or buying an investment property, we are here to assist and be your real estate team.