In this article:
An excerpt from Andrew Morello's eBook The Morello Matrix: your guide to property investment. Andrew, the winner of the first series of Celebrity Apprentice Australia, provides his comprehensive personal approach to buying real estate and building a property portfolio.
To get your free copy of the full Morello Matrix eBook visit www.ybr.com.au/morellomatrix
For your investment properties, these are some types of costs you can claim against the income from the rent:
- advertising for tenants
- repairs and maintenance
- cleaning, gardening and pest control
- bank charges, insurances
- body corporate fees and charges
- borrowing costs i.e. valuation, conveyancing
- interest repayment cost on mortgage
- council rates, land tax
- depreciation of assets
- legal expenses, property agent fees and commissions
- stationery, postage and property-related travel
- undertakings to inspect, maintain or collect the rent
- water charges
If you make a capital gain on your principal place of residence, the gain is usually exempt from capital gains tax (CGT) if the property is held for more than a year.
Investment property has its net capital gain taxed at your marginal income tax rate, in the year the contract for sale is signed.
It is never a waste of money to obtain professional taxation advice from a registered tax agent before purchasing a property. Don’t wait until the purchase is in train.