Hard questions every investor should ask come the new financial year

End of financial year has arrived. But for property investors, tax time isn’t just about deductions and depreciation schedules – it’s also a great time to re-evaluate your investment property and ensure you are in good standing for the next financial year.

Investors should ask themselves the following five ‘hard questions’ this month if they want their property to remain competitive – and occupied – in the current rental market.
ARE THE TENANTS RIGHT? 
Most rental agreements wind up after twelve months, which means it’s a good time to assess whether the tenants are right for your property. Ask yourself, do they pay their rent on time and take care of the property?

IS IT TIME TO REVIEW THE RENT? 
The new financial year is also a great time to assess whether the weekly rent is on par and if it’s providing you with the right returns. Not all rental agreements come to an end in July – but it doesn’t mean you can’t start planning and reviewing the market.

ARE YOU COVERED? 
Landlord insurance is a must for any property investor. After all, you need to protect your assets in case your tenant does something that seriously damages your property. However, in the hustle and bustle of tax time, many people forget about renewing their landlord insurance. So make sure you or your property manager ticks this box come the new financial year.

IS IT TIME TO DO SOME HANDY-WORK?
Many investors purchase a property with the hope to renovate down the track when further finances become available. The next thing you know, one year becomes five and you haven’t even picked up a hammer and nail.
Renovating your property can provide excellent rewards on your investment. In the short term, an improved property can enhance the appeal for renters, while long term a little bit of handy-work can result in greater capital growth for when you decide to sell down the track.

SHOULD YOU REFINANCE? 
For those who have had held their current home loan for several years, it’s likely that your lifestyle and financial situation have changed – so it could be worthwhile refinancing your property.
Every investor should consider refinancing to find themselves a better deal. For instance, you may find a lower interest rate or a loan which offers additional features (such as redraw or account splitting), or perhaps you’d like to use this equity to renovate the home. Refinancing may also offer potential tax benefits if you can access equity to invest in further properties for your portfolio. Regardless of the reason, speak to your financial advisor who can provide the best advice if this is an option for you.

Thinking of selling? Maximise your sale value and achieve a record sale amount.
Call John Tsironis 0402 699 497 to see what your property is worth.