Mistakes that landlords can make: Paying too much interest and tax!

Today’s post touches on a topic that may seem obvious at first. However, in our experience, too many landlords take this one for granted without actually stopping to check their own situation carefully...

There are two sides to assessing the performance of any investment…the money that comes in, and the money that goes out.

So, where finance is held on an investment property, it is vital to make sure that your finance costs are as low as possible.

Competitive finance offers can make a big difference to your bottom line at the end of each financial year, so regular reviews of the finance products you use are highly recommended.

Don’t forget that many financiers will provide incentives to ‘switch’ to a lower rate at minimal or no cost.

The other key part of maximising the performance of your investment is to make sure that you can claim the maximum expenses against the income generated by your property. This can mean the difference between no tax refund, a small tax refund or a large tax refund.

Claiming depreciation can provide overall tax benefits, beyond the rental income and can help to recover the tax that you pay on other sources of income, such as your wages.

Specialist companies are available to provide information on tax depreciation schedules, as an expert is required to provide advice for your particular circumstances.

Our advice is to always seek out and make use of qualified financial advice when minimising your costs on your rental property. When it comes to maximising your long term income, however, Barry Plant's Property Management experts are always available to advise you on the best approach to achieving maximum rents.

Disclaimer: The contents of this article are believed to be accurate at the time of posting. Any advice here is of a general nature only and has not been tailored to your personal circumstances. Please seek professional advice prior to acting on this information.