It costs an average of $2,661 per year* to cover the costs of owning a rental property. Property investors, how will the latest rise in cost-of-living impact your ability to manage these expenses? Property expense funding might be a solution and it’s not without tax benefits.
If you’re facing this new financial year with a general sense of unease, rest assured you’re not alone. If ‘covid’ was the buzzword for 2021, then we’re tipping ‘inflation’ as this year’s. From $10 lettuces to the latest rate hike, your new financial year might appear rockier than the ones most recently before it.
But, like when faced with any challenge, what best serves us is a clear, considered strategy to overcome. It’s often through these periods we’re forced to carefully evaluate our financial goals, and therein lies opportunity for progression.
If you own an investment property (or properties) firstly, congratulations. Secondly, have you sat down recently and really combed through what it costs to keep?
Below are just some of the potential expenses associated with owning an investment property:
Consider if these expenses are currently putting strain on your everyday lifestyle. Now ask yourself if the sudden cost of living rise is likely to impact your ability to manage these expenses. If so, have you considered a funding solution?
Property expense funding is an easy, affordable way of managing the cost of owning a rental property. Property Credit’s application process is quick, you can be conditionally-approved on the spot, and funds are usually available within 24 hours.
This helps to alleviate pressure on your weekly or monthly budget if other areas of your finances are suddenly and unexpectedly under strain.
It’s also tax deductible. If you were to ask any financial expert to list their top money-saving tips, ‘tax deductions' are likely to crack the top 10. Claiming the cost of using this funding solution come tax time is just another way to ensure you’re drawing the greatest potential from your investment. It could literally be the difference between a negative cash flow and a positive one.
The new financial year presents an opportunity to sit down and really take note of your expenses and money goals. Talk to your accountant or adviser about the best way to maximise tax benefits and remember that funding solutions are available to help you better manage your money.
DISCLAIMER: Property Credit is not a financial adviser. Consider seeking independent financial or taxation advice that relates to your unique circumstances.
*Reference: BIS Oxford