It’s that time of year again! EOFY is almost here and we want to provide you with some strategy considerations to set yourself up for success in FY25.
Aside from the regular obligations that arise during EOFY season, this period can be seen as an opportunity to proactively improve the strength of your investment portfolio. We have procured a collection of resources that we believe will be helpful for those wanting to make the most of EOFY.
Tax depreciation
EOFY is a great time to organise for a tax depreciation schedule to be created for your investment property, in order to maximise your legitimate tax depreciation allowance.
What is a tax depreciation schedule?
This is an exercise that allows property owners who are yielding regular income from that property, to claim depreciation (the fall in value of an asset overtime) on the property and all its assets within.
Depending on your personal circumstances and financial situation, depreciation of your property and its’ assets can be used as a tax deduction at tax time, which can provide attractive tax advantages to property owners.
As stated, this does depend on your personal and financial circumstances, so we do recommend that you consult a professional financial planner/adviser or accountant to decide if this strategy is best for you.
Investment portfolio review
Whilst this can be a broad and obvious point, it is important to mark this exercise in your calendar at some point during the year. EOFY is a great time to review all the assets/properties in your investment portfolio and check them against your long-term strategy. Things to consider concerning your investment portfolio include:
- What is the value of my property?
- Is it time to buy?
- Is it time to sell?
- How much capital could I potentially access to grow my portfolio?
- What is the current market interest rate?
- How much rent have I made in the past year?
- Do I need to raise the rental price of my property?
- Are there are changes to tax implications that I need to be made aware of?
EOFY is a good time to review the lease and rent arrangement of your investment property to ensure that the tenant is secured on a fixed lease term and at an market rent to maximise your income and to ensure security of tenancy on the property.
If you would like to have a free and confidential chat about your investment property portfolio, please contact our Managing Director, Michael Catalano on 0449 878 376.