An area you may have discussed with your accountant or financial advisor when purchasing the investment property is outgoings and maintaining the equity in the property during the time you own it. - Our goings would include mortgage insurance rates, water, and possibly body corporate fees. - General maintenance is pretty much a given, it's where things are repaired during the course of the tenancy. - But what you may not have budgeted for were things like preventative maintenance programs or the upkeep of the property to keep it fresh and modern and continue to attract market rent. - These areas would include paintwork and floor coverings. - The general rule of thumb for budgeting for routine maintenance would be about a thousand dollars per annum. - It's also recommended to prepare for unexpected maintenance like the replacement of hot water systems, dishwasher, or excess on insurance claims. - A preventive maintenance program would include regular maintenance on the roof, the gutters, keeping trees cut back to prevent storm damage, keeping gardens to a minimum to prevent infestation of termites, servicing electrical appliances, and the like. - Maintaining the equity in the property or considering replacement costs is more of a long-term budget of say five to ten years. - Some areas would include internal and possibly external paintwork, upgrading the floor coverings, the window coverings, upgrading electrical appliances, or installing energy-efficient devices. - Finally, as an investment property owner, expect to be out of pocket. - While we would all like to think the tenant is responsible for their share of the cost of damage, it may not always be possible to claim the full amount. - If there is a residual amount above and beyond the bond, you may need to consider if it's worth your time and...
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Video instructions and help with filling out and completing Will Form 8854 Properties
