YES! I want to learn more about property investments.

Great trick for better cashflow and equity gain

2nd August 2021

By Ross Barnett - Property Accountant

 

Do you want better cashflow?

Lots of property investors want better cashflow.  But then you start suggesting ideas and opportunities, and the response is “no”, “no I can’t do that”, “no my property isn’t suitable” or “maybe later”.

I watched Ilse Wolfe (Opes Partners Property Coach - https://www.opespartners.co.nz/property-coaching/renovations) speak to Waikato Property Investors Association a few weeks ago, and really enjoyed it. 

My key takeaway – Don’t just go with the easy answer and say, “no I can’t do that”. 

One of her favourite concepts was add a room.  I have discussed this before and often suggest the idea of adding a room, but most investors brush it off with a reason why they can’t.

·    Her thoughts were that in a main centre, adding a bedroom added on average an extra $150,000 of equity!  Are you keen on extra equity to help you borrow more in the future?

·    She showed a few cashflow examples, and the extra cashflow was fantastic.  Generally, the dollar spend is quite small, so it is also affordable for most investors


Action from here – Rather than saying that “can’t do it”, why not get copies of each floor plan for each of your rentals (or could even be your personal house) and try to work out how you could add another bedroom.  Or you could contact Ilse, and this is one of her favourite things to discuss.
Also consider other ways to increase cashflow

·    Review rent!  Simple and easy, and often can give great extra income!

·    Renovation

·    Convert garage to bedroom with ensuite.

·    Airbnb some of your personal house

·    Flatmates or boarders (see my past blogs about tax implications)

·    Subdivide, or minor dwelling on back


Repeat webinar on next week – I ran a great webinar on “reviewing current property deals” this week, and as we feel the information and responses were so good, we are repeating next week.  Same deals, and basic content as last week.  We had an example of a trade with 250% return, a great cashflow and equity gain duplex, a good gross yield property but that overall wasn’t great and more.   This is a free webinar please click here to register –
Wednesday 4th August 2021 – Analysing Current Deals and/or Opportunities Click here


PROVISIONAL TAX

The first provisional tax instalment is due 28/8/21.  We have started sending out provisional tax notices and will continue to do so over the next week.  If you haven’t received a notice and feel that you should have, contact Damara (see below)

Generally, you would pay the standard provisional tax amount, which is based on your last filed tax returns.   But if your earnings will be significantly different, we can estimate your provisional tax, or you can pay voluntary payments at any time. 

Contact Damara at damara.burton@one50group.co.nz, or ring 07 839 2801, and she will work with your account manager and help you with this.

MEETING WITH ROSS

With the major tax changes to interest deductibility coming in from 1st October, it is really important to understand your cashflow and ensure your structure is set up in the best possible way.

1.   New possible client – we offer a one-off property advisory meeting at a discounted rate, for new prospective clients.  Ross gives full advice for an hour, generally by zoom meeting.  And we even have some weekend appointments available!   https://www.cswaikato.co.nz/services-property-accountants-hamilton/201

Please note that Ross has a limited number of appointments available each week, therefore we recommend you plan in advance. Currently there is a 2-3 week wait time.

2.   Existing client appointments with Ross – you can book a paid appointment here https://one50groupcoombesmithpropertyaccountants.as.me/?appointmentType=20906362, or email Leo at leo.talampas@one50group.co.nz to organise.  


If urgent, please let us know and we can generally organise an urgent appointment or phone call.



2021 ANNUAL ACCOUNTING WORK

We had a lot of challenges with Covid and a change of system last year, plus new team members.  2021 is working a lot smoother for us, and we are continually trying to improve our process and make this experience better for you.

If you haven’t sent us your 2021 work – FIRST, there is no rush.  We will have an extension of time to 31/3/22 in most cases or we should be able to organise this.  So don’t feel you have to rush and do it today, or even in the next month.

If you are about to send us information, or want to get organised, we have a new online questionnaire and system that should be easier for you,

·    Fill in the information on this link and password - https://one50group.formstack.com/forms/ogpa_questionnaire
pw:one50group

·    We will then send you back a folder that you can put the information in, and it will also have a list of what we need.

·    We would love to hear any good or bad feedback about this, and please feel free to ring or email Jo or Damara on 07 839 2801 to discuss or email damara.burton@one50group.co.nz or joanne.leask@one50group.co.nz.


Kind regards

{Ross Barnett | Property Accountant | upcoming webinars etc here 👉https://linktr.ee/RossBarnett}

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