Claire’s Counsel – How awesome, it’s that time of year again!
Anita and I love our jobs! We are lucky enough to regularly meet with most clients throughout their Think Money journey. At our appointments we often go through your budget figures and see if we can identify any leakage. We can also help fine tune your My Big Money Goals, or we can just chat about how life is treating you at the moment and share your highs and lows (and yep, we get paid for this!)
Around this time of year, we generally catch up with a lot of clients to go through the ‘property tax’ spreadsheets for all your investment properties. As property investors, we should all seriously LOVE this time of year and be rubbing our hands together in glorious anticipation of the great tax refund to come.
Nowadays, the turn around is so fast, the tax refund from the ATO is only taking a number of days. Once received it goes straight into our………… INVESTMENT POT and tops it up again, ready for the next 12 months of expenses.
So, why is it that some of us find preparing the end of financial year (EOFY) information so tricky?
It’s all about ’systems and processes’. Luckily for us, Chris loves to help clients stay organised and on top of the ever increasing paperwork. That’s why all of us receive a Property Folder from Jack’s office, each time we purchase a bright shiny new property from him. Even before the building of our property gets underway, we get bombarded with paperwork from builders, solicitors, banks. Once it’s built the paperwork keeps pouring in from property managers, and if we have a unit, the ‘oh so complicated forms’ and minutes from the Body Corporate, plus all the invoices from council, water etc etc. With our property folder always close at hand, we just pop these documents into their rightful place and life is just unicorns and rainbows – please pass me a wine!
Of course, for some of us, this is not how it happens at all (apart from the wine maybe). A few of us have a big pile of paperwork, or maybe numerous piles of paperwork, scattered around the house, daring us to look at them, and shaming us to the point that we cover them over with a throw or hide them away in the cupboard – out of sight out of mind.
It can be challenging to keep on top of things, particularly when purchasing your first property. I can tell you though, having worked with a lot of clients over EOFY preparation, it is definitely worth taking some time out to get things in order. The difference it makes to your stress levels once you have got your filing up to date and complete your property tax spreadsheet, is palpable.
So, to any clients who just haven’t found the time to get all their property paperwork in order, make a time to come in and see me. Just by booking an appointment, it will give you a deadline to have those hidden away piles of paperwork tackled.
I would also recommend all property owners come along to our “Organised Owners” workshops where we go through the property tax spreadsheet, property folders and chat about all things property. The next one is being held on Tuesday 3rd July.
Hope to see you soon,
I’ve noticed that a few clients prepare their spreadsheets diligently for all their investment properties outside of super but don’t do one for their property(s) inside super. I think it’s important that we all know how every one of our properties is tracking, no matter what entity they are held in. It also makes sense to know, not only any shortfall caused by the property, but also the total of all other deductions coming from our super investment pot (e.g. insurances, fees). This information will help with the planning for the next 12 months and gives you the knowledge of any additional contributions you may need to make into your super.
So please, bundle up your property folders and make a time to come and see me. Remember to also bring your bank logins for all your property loans, including all pots you have, and yes, that includes your Super bank logins (usually Macquarie/Westpac).
Wayne Fraser, who some would have already met at recent Wealth Retreats, will be meeting clients at our Think Money office from 16th July to 21st July to complete your tax returns. Please contact Mel at email@example.com and she will gladly make an appointment for you.
Look forward to seeing you soon,