FINANCIAL ADVICE

Financial Advice

LOAN, STRUCTURE, AND REPAYMENTS

At Property Accountants we can assist you with many aspects regarding the financial aspects regarding property investment. This includes looking at the various loans and mortgages and determining the most suitable one for each individual property investment.

With mortgages, the appropriate loan/mortgage for one rental property investment may not be ideal for a subsequent or further property purchase. We understand the benefits of a wide range of loan options including interest only loans, a standard table loan (where interest and principal is paid), and revolving credit loans.

We will happily take the time to explain the various options and guide you on the most suitable option for your circumstances. It’s important to keep top of mind your short and long-term goals.

PROPERTY INVESTMENT ADVICE & STRATEGY

At Property Accountants we have considerable experience in all aspects of residential and commercial property investments.

Over the years we have seen considerable change in the tax rules and accounting practices for rental properties. These include:

• The various options, rules and regulations, regarding new and existing ownership structures.
• Changes to the Bright-line test, prior to and after 1 July 2024.
• Changes to the amount of claimable interest on rental properties,

Property investment and accounting practices are now much more complex, requiring a greater level of expertise. Landlords need to ensure they are meeting all new compliance requirements, for both the property, e.g. the Healthy Homes requirements, as well as current accounting practices.

Our experienced team can guide and assist you throughout your property investment path, guiding you on your investment and growth options, optimum ownership structures, and general advice about the local market and likely changes that will impact on your investment decisions and returns.

CASH FLOW & RETURN ON YOUR INVESTMENT (ROI)

When undertaking a property investment it’s important to consider future cash flow implications at the time of purchase. High rental occupancy, the size and payment terms of the mortgage, plus the amount of annual maintenance and repairs, all significantly impact on your cash flow situation.

Knowing these key factors, can influence the age and type of investment property you choose to purchase. Having a strong understanding of your likely operating and maintenance costs, and intended rental revenue, are key to effective cash flow management.

Key ROI points for consideration when purchasing:

• The growth and trends in the property market, and the expected capital gain.
• Location of purchase, e.g. access to public transport, local schools, amenities.
• Demand for rental properties in the chosen location.
• Intended duration of ownership, e.g. whether you are purchasing for a quick buy and sell, or a long-term hold.
• New legislation and changes regarding the offset of rental losses. With the recent introduction of ‘Ring Fencing of Rental Losses’, the ability to offset rental losses against your other income has significantly changed. As a result, rental losses are now offset in a more limited manner.

At Property Accountants we can help assess and determine likely cash flow and ROI implications for your individual and/or group property ownership situation. We will take into consideration your expected monthly cash flow outgoings, along with annual and likely maintenance costs. We can advise on best strategies to support your situation.