Why you need a great investment team
Even experienced investors need a strong team by their side. When investing in property, the advice of the following financial and property professionals will help achieve the best outcome.
An accountant performs a variety of accounting functions for individuals and entities, including keeping track of finances, record keeping and filing of tax returns. They have in-depth knowledge of taxation legislation and are professionally accredited. An accountant is responsible for managing property assets by tracking rent and expenses, as well as working out capital gains tax, land transfer duty, stamp duties and fringe benefits.
A financial planner can help investors understand the most beneficial financial investment options to grow and protect personal assets and wealth. They demonstrate how an investment property fits into an overall investment portfolio and model the cash flow and potential capital outcome over the investment time frame.
An insurance broker will assess the current market to find the most suitable cover specific to an investor’s property and risk profile. Research shows that up to 83 per cent of properties are under-insured. When an investment property is destroyed, it is essential the replacement value is sufficient. To ensure a property’s replacement cost is adequate, a property investor should speak with an insurance broker with quantity surveying expertise such as BMT Insurance.
Real estate agent / Buyer’s agent
In addition to finding properties that meet the investor’s criteria, a real estate agent or buyer’s agent provides convenience, looks after often-complicated contracts and has extensive specialist knowledge in the property market. They also have access to property listings that are not yet available to the public which may result in exclusive opportunities.
Conveyancer / Solicitor
Conveyancing is an essential step when selling or buying property. A conveyancer prepares all the necessary documents required for the sale, reviews contracts, arranges financial adjustments, and ensures the property is legally transferred to the new owner.
A property manager looks after the property on behalf of the investor. They can help make it easier to own an investment property by overseeing day-to-day management of the property including administration, finding tenants, setting and collecting rent, arranging maintenance and repairs, conducting inspections and evictions while ensuring all processes, procedures and tenancy requirements align with current legislation.
BMT Tax Depreciation
Tax deductions should be factored in when assessing the viability of an investment property. A tax depreciation specialist, such as BMT, can give an estimate of the likely tax depreciation deductions before a property is even purchased. A tax depreciation schedule should then be ordered as soon as a property is purchased to start claiming depreciation deductions for capital works deductions (Division 43) and plant and equipment deductions (Division 40). Only a tax depreciation specialist like BMT Tax Depreciation can be relied upon to maximise claims while maintaining detailed knowledge of all current ATO Tax Rulings relating to depreciation.