Reward in Owning Investment Property

There are financial rewards that can be reaped from owning an investment property -- even if it may involve a big cash outlay or home loan borrowing. With a little tax knowledge and some professional advice, you may be able to claim as tax deductions the majority of the expenses associated with the purchase and ongoing maintenance of your investment property. Advertising for tenants is a claimable expense if your property is available for rent, as are body corporate fees and council rates.

Borrowing costs associated with the purchase the of the property -- such as mortgage insurance, broker fees, valuations fees and stamp duty -- are not deductible upfront, but are deductible over the shorter of either the period of the loan or five years. Construction or capital works expenditure is usually deductible over a 25- or 40-year period. Depreciation, legal expenses, insurance, pest control and even lawn mowing are also among a long list of other deductible items.
Source: http://www.yourmortgage.com.au/article/investing-in-property--tax-planning-142750.aspx

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