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1 of 2
Once the property is leased, the             rent reviewed or perhaps, you need to
                                             attention usually turns to receiving the     start again with a new tenancy to achieve
                                             rent on time and keeping the repairs to      your desired outcome.
                                             the property within the budget for the
                                             year. As long as this is achieved other      Repairs and or improvements may not
                                             opportunities with lease terms,              be that far out of reach when you
                                             improvements to the property reaping         discover the pace that rents are
Industry experts have predicted rents will   capital growth increases and depreciation    escalating. Are these depreciable
continue to increase in the major centres    are sometimes not factored into the          items? If so a depreciation schedule
throughout 2011.                             overall equation.                            will add even more profit to the pool

How important is achieving those rent        Demand for rental properties looks to        come tax time.
increases when your strategy may also        be guaranteed at least for the next
                                                                                          Perhaps holding this property long term
include finding and keeping a quality        twelve months following major
                                                                                          is your poison and chasing the rising
                                             flooding in two states and the added
tenant, getting some work done whilst
                                             people resources they will require to        rents is going to put this plan at risk.
a tenant is in the property or
                                             rebuild. Add to the equation continued       At least this is currently a choice for
maintaining a long fixed term lease?
                                             population growth and the potential          you now.
Often it seems that just getting the         for increased house prices and it                                 -> follows on page 2
property leased with minimum vacancy is      certainly looks good on paper.
the only objective when leasing a
                                             This presents an opportunity for landlords
property and if you achieve a good
                                             of investment property, at least in this
quality tenant, well that’s a nice bonus.
                                             calendar year, to really consider where
In fact, there are many options to
                                             the money can be made on their
landlords for the tenanting of their
                                             investment.
investment properties and increasing the
rent at every opportunity is just one        It’s a great time to talk to your property
                                             manager about the local market you are
idea.
                                             in and discover the level of demand that
                                             exists. If you have demand to underpin
                                             you, choice becomes available with the
                                             opportunity to consider the current
                                             tenancy and whether it is working to your
                                             strategy. Does it need to be fixed, the
<- from page 1
                                          If you’re not sure, have the property appraised and you may be surprised for an
                                          entirely different reason. There may be an opportunity to invest further given the
                                          rents being achieved yet at this stage it’s unknown to you.

                                          Whichever combination you decide on, the point is this is your investment property
                                          and there are currently options to revisit how it’s working for you.




                                           Having new fittings in your                 can’t deliver the big bucks, they will
                                           investment property does more               refund your $700.
                                           than bring in a high rent. It will
                                                                                       It’s an opportunity many landlords
                                           appeal to a wider market, therefore
                                                                                       don’t know but as an investor, this is
                                           a faster commencement, quality
                                                                                       one of the tricks of the trade. There
                                           tenant as well as the highest rental
                                                                                       are many ways to make money with an
                                           price possible.
                                                                                       investment property, but a
                                           There is even a cherry on top for           depreciating schedule is as close as it
Answer (From page 1) Throw the ball        this story: a depreciation schedule will    comes to money in your bank account
straight up in the air.                    cost an investor about $700 upfront but     for little effort.
                                           the return will be five times that in the
                                                                                       A general list of the ‘effective life’
                                           first tax refund for the year following.
                                                                                       of a properties fittings can be found
                                           In fact, choose a depreciation firm who     at http://www.apmasphere.com/
                                           guarantee their work, that way if they      documents/242.




                                                                                        Electric kettles use nearly a third
                                                                                          of all the electricity an average
                                                                                       household uses for cooking, so only
                                                                                       boiling as much water as you need
                                                                                             can help save a lot of energy.
 Did you know? In 1840 the tradition of                                                          Avoiding kettles that have
 sending Valentine’s Day cards began in                                                unnecessary features like lights or
 earnest with the establishment of the                                                   ‘keep warm’ functions will make
 Penny Post in England, making mail                                                                for a greener cup of tea.
 affordable for the masses.




              http://www.ljgrealestate.com.au further expresso is a creation of apmasphere, whilst every
effort is aimed for accuracy, no guarantee nor responsibility is given by apmasphere.

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Espresso February 2011

  • 1. Once the property is leased, the rent reviewed or perhaps, you need to attention usually turns to receiving the start again with a new tenancy to achieve rent on time and keeping the repairs to your desired outcome. the property within the budget for the year. As long as this is achieved other Repairs and or improvements may not opportunities with lease terms, be that far out of reach when you improvements to the property reaping discover the pace that rents are Industry experts have predicted rents will capital growth increases and depreciation escalating. Are these depreciable continue to increase in the major centres are sometimes not factored into the items? If so a depreciation schedule throughout 2011. overall equation. will add even more profit to the pool How important is achieving those rent Demand for rental properties looks to come tax time. increases when your strategy may also be guaranteed at least for the next Perhaps holding this property long term include finding and keeping a quality twelve months following major is your poison and chasing the rising flooding in two states and the added tenant, getting some work done whilst people resources they will require to rents is going to put this plan at risk. a tenant is in the property or rebuild. Add to the equation continued At least this is currently a choice for maintaining a long fixed term lease? population growth and the potential you now. Often it seems that just getting the for increased house prices and it -> follows on page 2 property leased with minimum vacancy is certainly looks good on paper. the only objective when leasing a This presents an opportunity for landlords property and if you achieve a good of investment property, at least in this quality tenant, well that’s a nice bonus. calendar year, to really consider where In fact, there are many options to the money can be made on their landlords for the tenanting of their investment. investment properties and increasing the rent at every opportunity is just one It’s a great time to talk to your property manager about the local market you are idea. in and discover the level of demand that exists. If you have demand to underpin you, choice becomes available with the opportunity to consider the current tenancy and whether it is working to your strategy. Does it need to be fixed, the
  • 2. <- from page 1 If you’re not sure, have the property appraised and you may be surprised for an entirely different reason. There may be an opportunity to invest further given the rents being achieved yet at this stage it’s unknown to you. Whichever combination you decide on, the point is this is your investment property and there are currently options to revisit how it’s working for you. Having new fittings in your can’t deliver the big bucks, they will investment property does more refund your $700. than bring in a high rent. It will It’s an opportunity many landlords appeal to a wider market, therefore don’t know but as an investor, this is a faster commencement, quality one of the tricks of the trade. There tenant as well as the highest rental are many ways to make money with an price possible. investment property, but a There is even a cherry on top for depreciating schedule is as close as it Answer (From page 1) Throw the ball this story: a depreciation schedule will comes to money in your bank account straight up in the air. cost an investor about $700 upfront but for little effort. the return will be five times that in the A general list of the ‘effective life’ first tax refund for the year following. of a properties fittings can be found In fact, choose a depreciation firm who at http://www.apmasphere.com/ guarantee their work, that way if they documents/242. Electric kettles use nearly a third of all the electricity an average household uses for cooking, so only boiling as much water as you need can help save a lot of energy. Did you know? In 1840 the tradition of Avoiding kettles that have sending Valentine’s Day cards began in unnecessary features like lights or earnest with the establishment of the ‘keep warm’ functions will make Penny Post in England, making mail for a greener cup of tea. affordable for the masses. http://www.ljgrealestate.com.au further expresso is a creation of apmasphere, whilst every effort is aimed for accuracy, no guarantee nor responsibility is given by apmasphere.