You might consider growing trees in strategic locations to cut down on house heat. You might also consider insulation. Believe me, it makes a hude difference.
A valuer friend in Brisbane tells me street appeal has considerable bearing on property valuation. If you want to up your property value as efficienctly as possible, try some cosmetic uplift to the front side of the property. Landscaping, trendy, coordinated colours, all help.
Bank valuers can be pretty slack, so cosmetics like this can make a big difference.
On the other hand, I have heard there is a trend many banks are refusing to revalue within 6 or 12 months.
Bruce
Mooloolaba, QldGuys I have a similar problem. I got 2 townhouses side by side and about 30k equity or 25% in ea one. I dont want to use my cash doing them up so im thinking about paying the refinancing fees and getting 7k out ea one for improvements.
-For the interest on this 7k to be deductible it needs to be spent on investment purposes but can i spend it on rates and B.corp fees aswell as aircon?
-no probs with rent and tenants, my concerns are with taxman and bank?
+ should i use my cash and Interest fee periods to do the improvements first, then get the valuation and loan extension done.[email protected]
P.S Townsville is even hotter than brisbane.
Happy New Years EveryoneAdrian Cahill | AdrianCahill.com Personal Development Expert
http://adriancahill.com/from-investor-to-coach/
Email Me | Phone MeHere since 2002, however things have evolved over the years.
Sounds like Harvey normans have there interest free already built into the asking price [
]I thought i was wrong once, but i was mistaken !
Adrian, if the money is spent on ‘earning’ your income you can claim it.
Rates, renos etc. are a ‘cost of doing business’ and therefore should be claimable. Confirm with your accountant of course.
If you can add more value by doing the ‘reno’ first and then getting it revalued, you might be better off to go that way if you can afford it first. Although I don’t think a loan to ‘pay yourself back’ is then tax deductible (see disclaimer above[
]).You could of course pull the extra $$ out to purchase more property, and then it would be claimable.
Cheers
MelThe way to look at this is you are not only going to be able to charge more rent but it will also make it easier to rent out and you will be able to select a better tenant.
One thing that always amazes me with investors is they dont want to solve problems if it involves money. If you add an airconditioner it adds some value but as the rental markets tightens and it will, if you have 10 tenants with a choice of 20 properties and 5 have airconditioners which ones do you think will be let first.
About 6 years ago one of my properties had the hot water service stop working. Yep both tenants and owners like that. What I did was replace the hot water service with an endless unit. As my tenants had kids they could not have been happier. So what happened was I turned a negative result into a positive one. The tenants remained for another 3 years until I eventually sold the property. So lets not forget that in many cases tenants are as fussy as owners and if we can keep them happy and make then think of your investment as their home you will have a happy tenant and a great investment.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
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