PM Newsletter July 2025

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July Newsletter 2025

Sevensmartstrategiesto reducetaxableincome

Successfulpropertyinvestingoftenhingesonjusthow welllandlordsmanagetheirtaxes.So,iftheendofthe financialyearhasyoubreakingoutintoacoldsweat, thenitistimetoimplementsomesystemstokeepon topofpaperworkImportantly,takethetimetoexplore waystoreducetaxableincomeandmaximisereturns. Yourpropertymanagerandfinancialadvisormayalso havesomesuggestionsLet’slookatsomeofthemost commonstrategies

1.Deductibleexpenses

Itmaysurpriseyoujustwhatcanbedeductedasan expensewhenitcomestoyourinvestmentproperty

Thisincludesmortgageinterest,propertymanagement fees,bodycorporateandstratafees,councilratesand insurancepremiums,aswellasrepairsandmaintenance costsThereareseveralappsyoucanusetokeepa digitalrecordofexpenses.Orcreateyourownsystem–butmakesureitisorganisedandsecure

2.Depreciationofassets

Investorscanclaimalossinthevalueofthewearand tearonitems,suchasappliancesandfurnitureItis calculatedonthe‘effectivelife’andthecostoftheitem Youcanobtainadepreciationschedulefromthe AustralianTaxationOffice(ATO)oraquantitysurveyor. Recordsstartfromthetimetheitemispurchasedand mustbekeptforfiveyears

3.Homeofficeexpenses

Landlordswhomanagetheirportfoliofromtheirhome

officemaybeabletoclaimaportionoftheirutilitybills, homeinsuranceandmortgageinterestBesureto adheretoATOguidelines

4.Interest-onlyloans

Structuringloansasinterest-onlycanprovideshorttermreliefbyreducingmonthlymortgagepayments. Whileprincipalrepaymentsdonotcontributeto deductibleexpenses,interestpaymentsremaineligible fortaxdeductions,helpingtolowertaxableincome.

5.Repairsvs.improvements

Itisimportanttoknowthedifferencebetweenrepairs andcapitalexpensesforoptimisingtaxoutcomes Repairsaregenerallydeductibleintheyeartheyoccur, suchasfixingbrokenwindowsorreplacingpartofthe gutteringImprovements,suchasfloorcoverings, heatingoraddingbuilt-inwardrobes,maybesubjectto depreciationrules

6.Utilisenegativegearing

Negativegearinginvolvesoffsettingthelossincurred frompropertyexpensesagainstothertaxableincome, potentiallyresultinginataxrefundThisstrategyis especiallyvaluableforlandlordswithproperties generatingrentalincomebelowthetotalexpenses

7.Engageaprofessional

Seekingadvicefromaqualifiedtaxprofessionalor accountantwithexpertiseinAustralianproperty taxationisinvaluableTheycanprovidepersonalised guidance,ensurecompliancewithtaxlaws,andhelp identifyadditionalopportunitiesforreducingtaxable income

Aguidetosellingarental propertywithtenants

Sellingarentalpropertywithtenantscanfeel overwhelming,butitdoesn’thavetobewiththeright approach Somesimplestrategiescanmakethis processasstraightforwardandstress-free, importantlykeepingeveryonehappywhileprotecting yourowninterestsLet’stakealookatsomekeysteps: Canyousellapropertywithtenants?

Absolutely!Itisnotalwayspossibletogotomarketat thesametimealeaseisendingItalsooftenmakes financialsenseforinvestors,especiallyifyouhaveto makehomeloanrepayments.Additionally,other investorsoftenprefertopurchaseapropertythathas reliabletenants,and,insomecases,thiscanhelppush asaleovertheline

CanIkeepmytenantshappyandsellthe propertyatthesametime?

Theanswercanbea‘yes’ifyouarerespectfuland considerateoftheircircumstancesAlong-term tenantmaynotbehappyiftheyarefacingthesaleof their‘home’CommunicationiscrucialYoumustlet yourtenantsknowthatyouaregoingtosellbefore listingonthemarketThiswillalsoallowthemtoplan forunexpectedexpensesforremovalists,cleanersand utilityconnections

Arethereanyguidelinestofollow?

Everystateandterritoryhasdifferentlegislationwhen itcomestosellingatenantedpropertySo,besureyou talktoyourpropertymanagerabouthowitmay impactyourplans Forinstance,inNSW,ifyoudon’t tellatenantwhentheyaresigningtheleasethatthe propertyisgoingtobesold,theycanendthe agreementandmoveout

Canatenantedpropertystillbeinspected bybuyers?

Yes!However,ifthepropertyhastenants,youwill havelesscontroloverhowwellthepropertywillbe presentedMosttenantswilldotherightthingand ensureeverythingistidyandinreasonablecondition

Needextraspace?

Asalandlord,youcaneasilypreparefornewtenantsor manageexcessitemswithTAXIBOX Throughour partnerprogram,you’llhaveaccesstoasimple,stressfreestorageandmovingsolutiondelivereddirectlyto yourproperty Whetheryou’restoringfurniture, declutteringforrenovations,orin-betweentenants, TAXIBOXremovesthehassle noremovalists,trucks, ortripstostoragefacilitiesrequired

Inmoststatesandterritories, writtennoticemustbe providedtothetenantsatleast 24 hoursbeforethe property willbeshowntoapotentialbuyer CanIoffermytenantincentives?

Incentivesareagreatideatoencouragetenantsto keeptheproperty inspection-ready Italsoprovides somerelieffromany inconvenienceduringthe marketingcampaign Someideasincludetaking $50 to $100 offtheweekly rentinexchangeforthetenant tokeeptheproperty tidy Youcouldorganisea cleanerfortheday oftheinspection, leaveasmall thank yougift, suchasabox ofchocolates, orofferto provideareferenceforfuturerentals

If yourtenantsareunhappy about yourdecisionto sell, itmay bebesttoofferthemanearly releasefrom therentalagreement Whileitmay meanmissingout onincome, itdoescomewithbenefits Itwillallow you toaccesstheproperty andfix anythingthatneeds repairs, suchaspainting, newcarpetorsomesimple updatesthatcouldhelpsecureasale Speakwith your property managerabouthowmuchnoticeislegally requiredandthebestprocess

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Disclaimer Thisnewsletterdoesnotnecessarilyreflecttheopinionofthepublisher Itisintendedtoprovidegeneralnewsandinformationonly

Whileeverycarehasbeentakentoensure theaccuracyoftheinformationitcontains,neitherthepublishers,authorsnortheiremployees,canbeheldliableforinaccuracies,errorsoromission

Copyrightisreservedthroughout Nopartofthispublicationcanbereproducedorreprintedwithouttheexpresspermissionofthepublisher Allinformationiscurrentasatpublicationreleaseandthepublisherstakeno responsibilityforanyfactorsthatmaychangethereafter Readersareadvisedtocontacttheirfinancialadviser brokeroraccountantbeforemakinganyinvestmentdecisionsandshould notrelyonthisnewsletterasasubstituteforprofessionaladvice ©LJHookerCorporationLimited

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