Your Guide to Property Investment: What to Know Year-Round

As a property investor, you may be eligible to claim a range of expenses related to maintaining and managing your property. These commonly include:

• Interest on your investment property loan
• Repairs and maintenance such as fixing leaking taps or replacing broken locks
• Property management fees
• Landlord, building and contents insurance
• Council rates, land tax and body corporate fees
• Advertising for renters
• And importantly, fee for obtaining a tax depreciation schedule

Knowing what is claimable helps you plan and forecast your cash flow throughout the year, rather than scrambling for receipts at the end of the financial year.

Most investors in property buy to rent it out for a passive income stream. Whether it's to service the loan, however things don't always go as planned - for example, renters can leave or interest rates may increase, or tax laws change - what will happen there?

While property is a main pathway to creating greater wealth, it's important to consider the options if the cost of having the investment property increases and the amount of money that you receive decreases. Speaking with your local accountant or banker will help outline the options available to you, so you can avoid any stress on your household.

Depreciation reflects the natural wear and tear of your property and its fittings over time. Many rental providers are not aware of how significant this can be to their return.

A depreciation schedule prepared by a qualified quantity surveyor outlines exactly what you can claim each year. It usually includes:

• Capital works deductions which relate to the structure of the property typically for properties built after 1987
• Plant and equipment depreciation such as carpets, appliances, hot water systems, ovens, light fittings and blinds

It's a document that is also tax deductible and can return thousands over the life of your investment. Depreciation does not require you to spend anything additional the property. It is simply about ensuring you are claiming what you are entitled to.

Understanding gearing helps you choose the right path for your financial goals.

• Positively geared - When the rental income exceeds the expenses and your investment generates income over and above its running costs.
• Negatively geared - When your expenses exceed your rental income. The loss can reduce your taxable income.

Neither approach is better. It depends on what aligns with your broader financial strategy. Knowing where you sit helps you plan, adjust and make informed decisions.

A smart investment needs smart management. A skilled property manager does not just collect rent. They:

• Protect your asset
• Maintain proactive communication
• Monitor your income and expenses
• Keep your property compliant
• Help maximise returns not just minimise headaches

At Buxton, we manage your investment like it’s our own. Quietly. Competently. Always with your goals in mind.

You get clarity, not confusion. Confidence, not paperwork stress.

Property investing should feel like it's moving you towards your goals. The right guidance can turn an investment from something passive into something purposeful.

If you would like support with your rental property, expanding your portfolio or want to ensure you are maximising your returns, our property management team is ready to help.

Buxton is real estate for lives in progress. For over 160 years, we’ve been a property partner for every generation, guiding Victorians (and their stories) home.