Creating wealth & securing your future through property-IPPA

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Page 2 WHO PAYS? 73% Tenant 3% You 24% Taxman TAX BENEFITS Number of properties: 1 Investor Current taxable income: 85,000 Rental income: 18,720 Total income: 103,720 Rental deductions: 35,090 New taxable income: 68,630 Current tax (on 85,000): 21,097 New tax (on 68,630): 15,224 Tax saving: 5,873 Total tax credits: $5,873
Costs associated with purchasing an investment property Property deposit Requirements vary but typically at least 10% is required. Stamp duty Is levied by each state government and payable on the entire property value for a one part contract (townhouses and apartments) and on the land content only for house and land, 2 part contracts. Legal fees Our panel solicitor will receive and review contracts on your behalf and mark them up for signing. They then coordinate the countersigning process by the vendor and attend to the settlement. Quantity Surveyor’s Report Also known as a ‘depreciation schedule’ this is essential to maximise your tax rebates. It is prepared once for each property and presented to your accountant. Insurances It is essential that you insure your property, both the building itself and the contents. If your property is part of a strata complex (apartments and most townhouses) then the building insurance will be covered by the body corporate fees. It is also necessary to take out Landlord Protection Insurance for either a house and land or apartment or townhouse. Independent Building Inspection As part of the service offered to you we can arrange for an independent building inspection prior to handover by a licensed inspector. This is a comprehensive 2 stage report with all ‘defects’ numbered and photographed. These are used to coordinate the rectification of any outstanding issues in the property. It is not mandatory but advisable to have an inspection done. Pro rata adjustments On settlement you will have to allow for adjustments to the rates pro rata for the year, e.g. council rates, body corporate fees etc., Normally allow 4-5% of the purchase price for costs on top of your deposit. For example to purchase a property valued at $400,000 you would require: Deposit $40,000 Costs $20,000 Total = $60,000
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Page 6 and 7: Kinsella Place Want comforable spac
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Page 12 and 13: Gallery Inclusions OUTDOOR BATHROOM
Page 14 and 15: MANGO HILL 3bed 2.5 bath 1 garage +
Page 18 and 19: IMPORTANT CONSIDERATIONS Please rea
Page 20 and 21: 7.Finance due date 14-21 days In th

Creating wealth & securing your future through property-IPPA

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