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Self management property

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chanira | 30 Sep 2014, 08:43 AM Agree 0
Hi All,

I am living in QLD. I am thinking of buying an investment property in Brisbane (Apartment/unit). I am thinking of maintaining the property by myself without hiring an agent.
•Does any one know if I managed by myself whether I can claim tax on this investment property. IS there any conditions which I should know?
•What you all think about the profit margin if I managed the property by myself ?
•Any possible legal barriers to manage a property by myself?
•If Buying an Apartment/unit can I expect any capital growth in future?
•IS there is difference in depreciation schedule if I buy Apartment/unit other than a house?
•can any of you give me guidance of market price of Apartment/unit with 2 bed, 2 bath, 1 car park in west end in Brisbane?

Any information about self managed property is highly appreciated.

Thanks
  • Propvest | 01 Oct 2014, 09:56 PM Agree 1
    Hi Chanira,

    1) You can manage a property by yourself and claim tax but:
    i)There are many pitfalls of doing it yourself:
    *) To avoid pitfalls get yourself a real estate sales licence - it cover letting and all the correct documentation / legalities
    **) Without training or an agent you will have a bunch of legal/OFT issues
    ii) The cost of a Sales licence will equal _approx 6 months of an agents let fee
    2) If you want to buy an apartment or unit you WILL incur Body Corp fees these vary but are usual in excess of $2400. pa
    3) If there is a body corp involved there could be expenses involved you never planned on even with shrewish units/apartments
    4) The investment is either for capital growth or a cash cow (normally not both). I would look at a 3 bed house rather, unless there is a bargain of magnanimous proportions.
  • Adam Sweeny | 02 Oct 2014, 09:33 AM Agree 1
    Hi Chanira

    Managing it yourself is a cost effective way to go in terms of avoiding agent fees and commissions, but like Propvest said you really need to know your stuff.

    I would suggest reading as much as you can on the QLD Rental Tenancy Authority website http://www.rta.qld.gov.au/ to learn all about being a landlord and your responsibilities.

    Regards
    Adam
  • | 06 Jan 2015, 03:22 PM Agree 0
    Managing a property yourself isnt always pretty. generally doing it privately its more expensive going to VCAT for issues if they arise, theres limited rules and the landlord can increase rent whenever they like at the amount they like, not good for the tenants. having a property manager you dont even need to deal with talking to the tenants or any complaints. thats what they are paid for. id suggest look for a good deal. anything under 7% paid to the property manager is a good deal.
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