Owning a rental property can be a rewarding investment, but there are plenty of costs and decisions to consider along the way. Rental income is only one part of the picture. Expenses, property management, lending, tax considerations and the way your property is used can all affect your overall return.
At Ray White New Plymouth, we’ve put together an Investment Guide to help landlords and property investors get a clearer picture of the financial considerations that come with owning an investment property.
The guide brings together information on topics such as rental property expenses, property management fees, Healthy Homes costs, interest deductibility, long-term rentals and Airbnb, ownership structures, home office expenses, mixed-use properties and the bright-line property rule.
The guide is worth a look if you’re considering buying an investment property, already own a rental, or want to review the costs associated with your current portfolio.
It also points out areas where getting advice from the right professional can be helpful. Tax, lending and ownership decisions can vary from one investor to another, so your accountant, financial adviser or mortgage professional can provide advice based on your circumstances.
The Investment Guide covers a range of topics, including:
Property management is also covered, including the costs associated with having a property manager manage a tenancy or provide specific rental property services. The guide explains that these expenses may be claimable, subject to the relevant tax rules.
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It’s a handy starting point for New Plymouth landlords who want to understand more about rental property costs, investment considerations and the role of professional property management.
For advice relating to your own financial or tax position, we recommend speaking with your accountant, financial adviser or another suitably qualified professional.