Perlu Network score measures the extent of a member’s network on Perlu based on their connections, Packs, and Collab activity.
View our support article for more information.
Your official source for Twitter Platform news, updates & events. Need technical help? Visit https://t.co/mGHnxZU8c1 ⌨️ #TapIntoTwitter
Furthermore, a property that you plan to buy, reno and then rent for positive cashflow would be a combination of two profits – generic cashflow and capital growth (initially manufactured via the reno, where more perceived value is added than its cost, and thereafter generic growth from general market appreciation). Therefore, we currently need to take generic growth off the table in most scenarios as a realistic profit option, but that still leaves us with: positive cashflow – generic and manufactured, and manufactured capital growth strategies. If so, then it doesn’t really matter if prices are falling so long as your assets remain cash-flowing, in which case your investing is sustainable and you won’t be a forced seller in a down market. A down-trending market produces some extra heartache, and risk, when manufacturing your property profits since your gain is predicated on perceived value, and if values are falling, then your profit margin might be shrinking during the time it takes to finish the project.
New rules, introduced just over a year ago (and therefore perhaps not ingrained in many people’s minds), mean that investors can no longer claim travel expenses relating to inspecting, maintaining or collecting rent for a residential rental property as deductions, unless they are carrying on a rental property business or are an excluded entity. Note that under the new rules, where you are not using the property to derive rental income but are using it for other income-producing purposes (for example, you are using it in a business) travel will continue to remain deductible. The new law is broad in scope and denies deductions for not only travel to the property for the purposes of inspecting, maintaining or collecting rent for example, but also travel undertaken that’s related to the property but not to the actual property itself. The good news is that the new law does not apply where travel expenses are incurred to visit a tax agent for the purposes of preparing and lodging an income tax return that happens to include rental income and deductions.