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Questions to ask your accountant
before buying an investment property


Written by: Peter Verdiglione.
List4Free agent services provider.


It's not always something that comes to mind when buying an investment property, but it’s important to consult with your accountant (if you have one) to understand the tax and cash flow implications of making the purchase.

Buyers need to consider what they need to be doing to maximise their tax outcome and an accountant can provide advice on this topic as well as outline the impact that the purchase could have on your monthly or weekly cash flow.

Things to think about before making an investment property purchase include:

Budgeting

Ask your accountant if they can help to pull together a simple budget and plan for you to work from, being mindful of the fact that there will be ongoing costs associated with a property purchase e.g. carpets (that will need to be replaced say every 5 years).

Gearing

How much can I and should I borrow? As attractive as an investment property might seem to you it’s important to think about not overstretching yourself for example, if unforeseen events were to happen – such as losing your job how would you be able to cope? Don’t necessarily borrow the maximum amount that banks are offering to you unless you know you can make the numbers work.

Interest only loans

How much can I afford to pay on mortgage payments? Most lenders will not offer interest only loans unless your income is substantial, so in your buying decisions, you should budget for the costs of principal plus interest repayments.

To discuss your needs and budget or to discover which investment loan providor/s might be the best fit for you, why not chat with a List4Free investment loan expert.

Depreciation

Is it better if you buy a brand new build which offers high depreciation allowances or to go for an older property that can be renovated with the costs depreciated over time? Consider the tax breaks relating to an investment property to determine the type of property that is best for you.

Make the Right Choice

If you're not seasoned investor, you may find yourself buying with your heart and not your head. When it is time to buy, it's best to use the services of an experienced Buyers Agent. A Buyers Agent knows the market and can help you maximise your investment outcomes.

Don't regret your purchase. If you are not an expert, talk to an expert. Our professional List4Free suppliers are here to help.
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