It is good practise as an investor to annually review your costs associated with your investment property to assess how it is performing. Below are some of the common costs associated with owing an investment property.
Insurance
Insurance costs generally increase annually, it is therefore best to ensure the level of insurance coverage on your investment property remains accurate. Ensuring that you have suitable coverage for your individual property’s needs is important.
Interest rates & Bank fees
Are you receiving the best rate? Take the time to compare your current loan to see if you are receiving the best interest rate. Most banks have annual or monthly fees that you may need to pay. If this is going to be an ongoing expense it may be best to shop around for the most comparable rates.
Maintenance
Whether your investment is a newly built home or a number of years old, chances are you will have maintenance expenses throughout the year. It is a recommendation that you set aside a percentage of the rental income to cover these expenses. Maintenance expenses can be quite unpredictable & will fluctuate each year.
Water Rates
A lot of tenants are now paying for their water consumption. If you covering the cost of the water rates it may be time to consider ensuring your property is water efficient & charging the tenants on their next lease renewal.
Depreciation
Some investors may not be aware that you can also claim depreciation.
Review these with your Accountant.
For all your investment property questions, please feel free to contact me anytime 0473 383 354 or via email admin@stacymatthewsrealty.com.au