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1. Get a bank valuation
If you are converting a PPR to an investment property, you should get a valuation done at the time the property becomes an investment to minimise capital gains, Mr Mortlock said.
2. Get a depreciation schedule at the point the PPR becomes an investment property
“With changes to depreciation legislation, you won’t be able to claim plant and equipment items unless you purchased prior to the 9th of May, 2017, and rented it before the end of that financial year,” Mr Mortlock said.
“But what hasn’t changed is building structure deductions.”
3. Don’t keep your PPR as an investment property just for the sake of it
“If you own a PPR in a market that has a high vacancy rate and minimal prospects for capital growth, it might not be the best decision to keep it,” Mr Mortlock said.
“It might be worth selling it and buying in an area with better long-term growth potential.”
4. Recruit a team of advisors to help
“We too often see property investing as a bit of an afterthought,” Mr Mortlock said.
“I like to say to people, you can eat your lollies but you’ve got to have your veges first.
“Plan your exit strategy and what you’re trying to get to over whatever time frame.”
5. Be patient!
“Have a long-term plan,” Mr Mortlock said.
“Don’t worry about year-on-year changes.
“Buy a property for the long-term and don’t make kneejerk decisions — it’s expensive to get in and out of investment properties.”