Tax depreciation schedule

If your intention is to rent out the property it’s simply time to find yourself a tenant. The steps involved are outside the scope of this system, so please check out our website for our Complete Renting a Property System. To give you a starting point, speak with rental property management agencies in the area for rental details.
Sellning the property
Assuming you have followed the steps in this renovation system, you have successfully found, purchased and renovated a property on time and on budget. It’s now time to complete the process with a successful marketing campaign to sell your property and realize your profit. It’s not a case of handing the property over to just any agent and hoping offers will roll in the door. There are still a number of steps you need to follow and, believe it or not, there is still value to add during this phase of the process. Your objective now is to secure the best price for your property and walk away happy that you have completed the renovation with a successful result.
By implementing the following strategies you will maximise your selling price.
Preparation of sale documents
Unless you have these skills yourself, you will require the services of a legal representative (solicitor or conveyancer) to handle the legal dealings associated with the sale. They will prepare the necessary documents for your sale to proceed. The documents can take around a week to prepare, so we get these done as soon as the renovation is finished to ensure we are ready to provide the agent we employ with the necessary documents in a timely manner.
We do this because we want to be in a position to sign contracts as soon as someone is interested – to strike while the iron is hot – and not have to wait around for contracts after we have an interested party. Some states and areas have restrictions on contract timeframes, but you should make every attempt to have these done prior to agents showing any prospective purchasers through your property.
For a renovation property you will need to supply relevant information regarding the works you have undertaken. You are required to supply a copy of any planning or building permits obtained, which are to be included as part of the sale documents. Also include the certificates received from any other works performed by licensed tradespeople, such as plumbers and electricians.
Tax depreciation schedule
If our target market includes investors, for a few hundred dollars we get a tax depreciation schedule prepared. From an investor’s perspective, it adds value to the sale; we use this as a marketing tool and include it as a free bonus. The schedule contains information that a prospective purchaser’s accountant requires to maximise the tax benefits for the
property. Because the property is renovated there are likely to be several chattels that can be declared. An in-depth discussion of this concept is outside the scope of this manual; however, just be aware that, if your target market does include investors, this would be a worthwhile investment.

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