{"id":3238,"date":"2022-11-01T07:09:00","date_gmt":"2022-10-31T20:09:00","guid":{"rendered":"https:\/\/onthecoastpublications.com.au\/onthecoastover55\/?p=3238"},"modified":"2023-09-04T16:27:05","modified_gmt":"2023-09-04T06:27:05","slug":"hidden-costs-of-property-investment-surprises-to-anticipate-real-estate-central-coast","status":"publish","type":"post","link":"https:\/\/onthecoastpublications.com.au\/onthecoastover55\/hidden-costs-of-property-investment-surprises-to-anticipate-real-estate-central-coast\/","title":{"rendered":"The Hidden Costs of Property Investment: 7 Surprises Every Investor Should Anticipate"},"content":{"rendered":"\n

By Amanda Irwin<\/strong><\/p>\n\n\n\n

At the beginning of this year 93.9 per cent of those who sold homes in Australia\u2019s capital cities made a profit, according to CoreLogic\u2019s most recent pain and gain report. A good portion of these lucky sellers were property investors who most likely received rental income on top of a hefty capital gain.<\/p>\n\n\n\n

Property\u2019s not a foolproof investment, however, and if you\u2019re not aware of all the pitfalls and extra costs involved you could even lose money. To make sure fledgling investors aren\u2019t caught out, here are seven of the most commonly unexpected costs of property investment.<\/p>\n\n\n\n

No.1: Legal Fees
<\/strong>When you buy property you\u2019ll need to have contracts compiled and reviewed by a solicitor or conveyancer.<\/p>\n\n\n\n

You\u2019ll want professional legal advice to make sure you\u2019re making the right decision, and you\u2019ll need further help organising settlement and liaising with the seller\u2019s solicitor or conveyancer and bank.<\/p>\n\n\n\n

That\u2019s where a solicitor or conveyancer comes in. According to the Australian Institute of Conveyancers this service will cost between $900 and $2,000, depending on the complexity of the purchase, so it\u2019s a cost that should always be budgeted for.<\/p>\n\n\n\n

No.2: Quantity Surveyors
<\/strong>When you first purchase an investment property you may need a depreciation schedule. This document lists all assets related to the property and calculates their depreciation, allowing you to claim that amount when you file a tax return. This is essential, as claiming depreciation will reduce your taxable income and, as a result, your tax bill.<\/p>\n\n\n\n

The cost of hiring a quantity surveyor varies according to the size of your home and your location, estimated on average it will sit between $450 and $700 plus GST, depending on the size and age of your property.<\/p>\n\n\n\n

No.3: Accountant Fees
<\/strong>It is estimated that the average accountant could cost around $134 an hour. It\u2019s not technically essential to hire an accountant when you buy an investment property, and you could get by filing your own tax return.<\/p>\n\n\n\n

However, accountants are trained and experienced at maximising the tax efficiency of investment properties. Therefore, hiring an experienced accountant could save you far more than the cost in the long run by reducing your tax bill and making your property work for you.<\/p>\n\n\n\n

No.4: Landlord\u2019s insurance
<\/strong>Landlord\u2019s insurance is non\u2013negotiable when buying an investment property. Before you sign a contract of sale you should already have a landlord and house insurance policy in place to protect yourself in any event.<\/p>\n\n\n\n

This should cover you for things like:<\/p>\n\n\n\n