Property Investment Services
As a Property Investor your taxation and financial needs are complex and unique, and you require a specialist approach. Baggetta & Co is a holistic, boutique firm and one of our core service areas is Property Investors. We specialise in property investment tax returns, taxation advice and financial services for Property Investors seeking to grow their property portfolio in a tax effective manner. Whether you are starting your property investment journey, or you are a well-established property investor, Baggetta & Co can provide you with the right advice at the right time.
We are considered one of the most trusted property investment accountants in Perth.
The right advice at the right time...
Every investors’ approach to property investment is different, making their tax position unique. The benefit of having a trusted and experienced property investment Accountant by your side is an invaluable financial resource in today’s economic landscape.
A holistic approach to Property Investing
All Property Investment clients meet directly with Paul Baggetta, the Founder and Principal of Baggetta & Co. Paul Baggetta has been a taxation accountant for over 38 years, a financial planner for over 21 years and is a Real Estate Licensee and holder of a Triennial Certificate (currently non-trading). Paul’s combination of qualifications and experience means that he can assist you with:
- The right investment strategy,
- The right ownership structure,
- The right loan structure,
- Maximum tax benefits,
Paul also has a network of professionals to help you find:
- The right property
- In the right location
- At the right price
This unique combination of skills and expertise has led to a specialist approach.
Below is a small snippet of the Q&A section of Baggetta & Co’s recent webinar, hosted by Paul for Property Investors on ‘How to save thousands in tax while protecting your assets using structures’.
Menu of Services
Our Property Investment clients receive a holistic and professional approach to all their property investment service needs, including:
- Accurate Rental Property Tax Returns
- Pre-purchase Property Investment & Feasibility Advice
- Tax Planning Advice
- Property Development & Subdivision Tax Advice
- Margin Scheme Tax Considerations
- Investment Property Portfolio Review for ongoing, appropriate and timely advice
- Asset Protection strategies
- The right ownership structure for optimal long term results
- The right tax structure – Family Trust, SMSF, Unit Trusts, Hybrid Trusts, Corporate Trustees, etc.
- Positively geared versus negatively geared investment properties
- Strategies to create long term wealth through property investing
- Property Investment Strategies for high income earners wanting long term tax benefits
- Property Investment Capital Gains Tax (CGT) implications
- Renovations and GST implications
- Repairs and maintenance versus capital improvements
- Depreciation and legal tax minimisation strategies
- Helping you be ATO compliant, whilst maximising your tax deductions
Property investors who are not receiving the appropriate advice from their Accountants may not be taking advantage of all the cost savings and tax benefits legally available to them.
First time property investors
If you are looking to invest in your first investment property then here are our top 8 tips:
- Long Term – Investing in property is a long term strategy, long term being 10 plus years, and unless you intend keeping the property for 10 plus years you should not be investing in property.
- Buy & Flip – First time property investors should not buy a property with the intention to quickly flip it for a profit, without extensive experience and research. Our experience has shown that this usually results in a big fat fail. Short term property investing is extremely high risk, especially in non-booming economy.
- Growth and Return – Buying an investment property close to transport, universities and schools will mean stronger rental demand, which ultimately can translate to higher capital growth and less risk of lower returns due to short or long vacancy periods.
- Bank Pre-Approval – Obtain a bank pre-approval before you start looking, so you know your limit, and stick to it. Buying property as part of an investment strategy is a financial decision – you need to buy well and smart, and not allow it to become an emotional decision.
- Budgeting – Understand your ongoing costs, making sure you budget for rates, insurances, general repairs, management fees and possible vacancy periods. Remember you don’t just have to buy the property, you also have to be able to fund the holding costs for the long term.
- Location – Beware of being encouraged to buy in isolated towns and regions, especially during periods of economic booms, for example the mining booms of the 1990s to early 2000s. The mining downturn since has led to significantly reduced rental returns and property prices, and high vacancy rates.
- Free Advice – Beware of “free advice”. The property spruikers’ don’t usually make their money from investing in property. They will usually make their money from the expensive training courses and reports they will encourage you to sign up for at the “free seminar”, and from being paid by the Developers or Vendors they are working with.
- Professional Advice – Invest in a one hour consultation with a Property Accountant to be sure that you can afford this investment and to understand the tax implications. Create a sound strategy first, buy later.
First time property investors need to do their research, crunch the numbers, be informed and take the emotion out of the equation before taking the plunge.
At Baggetta & Co, our goal for our first time property investors is to buy property for the long term and not find themselves having to sell it in the short term due to a lack of planning and research. If and when our clients decide to take a second, or multiple leaps of faith towards building a property portfolio, we are there to back them up and steer them forward with professional advice annually reviewing their financial circumstances, financial arrangements and property portfolio.
Investing in Multiple Properties
Here are our top 8 tips for property investors building a property investment portfolio with multiple properties:
- Valuations – Understanding the current value of your properties, and the equity in them, could help fund the deposit for your next investment property purchase.
- Diversification – consider a mix of property types over different areas of Australia for maximum portfolio growth and minimum risk to overall returns.
- Financial Risk – the more the properties the higher the risk. Ensure your insurances are up to date with landlord insurance, building insurance and income protection being critical.
- Review Budget – Regularly revisit your cash flow projections as ongoing costs, such as insurances and rates, can increase over time and affect your bottom line.
- Refinancing – although there are costs to refinancing which must be taken into consideration, there are several potential benefits. Done well and at the right time, property investors can secure better interest rates and reduce monthly payments to save money.
- Quality not Quantity – Ensuring your property portfolio is made up of first-rate properties safeguards maximum rental returns and minimal vacancies versus potentially lower rental returns and high vacancies.
- Protect & Hold – Don’t rush out and use the equity in your current properties to buy another investment property just to see how many you can get on board. Take the cautious approach to safeguard your higher performing properties than to use their equity too soon to purchase again.
- Professional Advice – continue to seek professional advice to be sure that you can afford your next investment property and to understand the overall tax implications. Revisit your investment strategy and numbers before buying another property.