Managing director of MCG Quantity Surveyors Mike Mortlock stated that with interest rates rising, construction costs surging, and increasing cost-of-living pressures becoming a heavier hip-pocket burden, investors should take steps to “get savvy” about the status of their financials.

“Our research shows investors are becoming more prudent about their financial arrangements, and their level of engagement is only set to ramp up as fiscal pressures force us all to look at ways of maximising our bank balances,” he stated.

He also urged property investors to take a sooner-rather-than-later approach when dealing with their real estate investments in these “tough economic times”.

“If property investors were intending to carry out some of these actions on their investment, but hadn’t got around to doing them yet, my suggestion is that they tackle them immediately,” the tax expert stated.

“Making these easy moves now will maximise your tax return – a much-needed boost given challenges around the rising cost of living,” Mr Mortlock added.

Below are five ways investors can boost the tax return on their properties while increasing their overall value:

1. Tackle small repairs and maintenance 

Mr Mortlock stated that tackling niggling repairs and maintenance means immediate money in investors’ pockets, as works carried out now are instantly claimable.

He explained that most investors put off smaller upkeep works as they focus more on the bigger renovation projects.

Citing MCG Quantity Surveyors’ latest 1000 Assets Report, Mr Mortlock said an estimated 30 per cent of all investment properties undergo renovation work, with the cost averaging around $25,000 to $30,000 per property.

But the expert said that even small works could deliver a benefit. “I’m talking about those minor works you’ve been putting off. Any repair – no matter how small – allows you to claim the cost of materials used to tackle it,” he said.

Additionally, Mr Mortlock explained that labour costs can also be claimed if you work with a contractor.

“Works can include landscaping – something that landlords may be able to carry out themselves with the tenant’s permission. You also get to claim for costs incurred on pruning, cleaning, gardening and lawn mowing,” he said.

He reiterated his call for investors to take on these works immediately. “Now is the time to act because any costs you incur in June are 100 per cent tax deductable in July. Miss this window of opportunity and you’ll be waiting another year to get the benefit,” he explained.

2. Prepay your loan interest

Investors who have the means to pay their annual interest charges in advance should consider doing so.

“Aussies have managed to boost their saving throughout the pandemic with increases in their offset accounts and savings,” he explained.

“I’d suggest devoting some of that treasure chest toward pre-paying your interest bill for the coming year. The sum you pay is immediately claimable against your 2020-21 tax return,” the expert advised.

He said that while the advance payments won’t insulate your pockets from the looming rate hikes, they will give you a leg up come tax time.

“Interest rate rises seem inevitable this year. However, if you have the means, prepaying a bigger chunk now will give you room to deal with increases as the year progresses, while boosting your tax return immediately,” he said.

Mr Mortlock also advised investors who also have redrawn equity from their investment property mortgage to ensure that the funds were used for investment purposes to avoid getting in trouble with the Australian Taxation Office (ATO).

3. Secure a depreciation schedule

If you haven’t already organised a depreciation schedule, Mr Mortlock suggests you pick up your phone and schedule one today.

He explained that depreciation schedules prepared by suitably qualified professionals give hugely advantageous tax-deductible depreciation to your property’s fixtures, fittings and finishes.

And while there are still investors who are still not well versed with this cashback-boosting strategy, he said that more are becoming aware of this tax advantage.

“Fortunately, investors are becoming more aware of their advantages. Our most recent 1000 Assets Report revealed the amount of time between settlement and ordering a schedule fell to around eight months in 2022 – more than half the time it was in 2016,” he revealed.

Some investors might frown at the hefty depreciation schedule costs that could go up to hundreds of dollars, but Mr Mortlock said that it could “deliver thousands back to the landlords”, making it a worthwhile investment.

4. Purchase items for your property 

Mr Mortlock said that while having items fully installed before the end of the year might be a challenge, landlords should instead focus on buying freestanding items that contribute to the rent return.

He advised buying items that can be quickly installed, such as light fittings, rugs, tiles and carpet. Other items he listed included pot plants and other garden ornaments, freestanding lamps, and appliances such as a new chest freezer.

“All things that will be used by the tenant, help boost the rent and can be deductible,” he stated.

For items worth $300 or less, investors can claim the total cost on the tax return.

For those with more money to spend (and if time permits), he advised considering installing equipment priced under $1,000. “[Deduction] rules make this type of outlay late in the financial year extremely lucrative in terms of tax,” he explained.

5. Work with your advisers

Lastly, Mr Mortlock advised investors to check in with their respective property advisers and to do it before June ends.

Mr Mortlock said property managers keep a running tally of deductible repairs and upgrades as part of their annual rental statement, and this will be required reading for your accountant.

“In addition, your property manager will provide advice on works they can coordinate in the coming week or so to help improve your deductions by year’s end,” he said.

The expert also reminded investors that advisers’ fees are tax-deductible and to include professional costs as part of their tax return this financial year.

HLB Mann Judd Melbourne partner Josh Chye stated that investor demand from markets, including Singapore, Hong Kong and Malaysia, remains strong and, if anything, has been increasing.

“New enquiries from mainland Chinese investors have scaled back significantly but other parts of the Asia Pacific region, including Singapore and Hong Kong, are consistently strong and Australia remains an attractive jurisdiction despite the relatively high taxation rates,” he said.

He explained that Australia’s relatively high taxation rate — both at a personal and corporate level — has served as a major deterrent for some investors looking to get into the country’s property market. 

For perspective, the Land Down Under’s personal tax rate of 47 per cent is almost double Singapore’s rate of 22 per cent. This disparity is more evident when compared with Hong Kong’s rate of 17 per cent.

Adding to foreign investors’ pain, Mr Chye explained: “We also have higher than average tax costs for foreign buyers of real estate than our global neighbours, including on land tax.” 

“This has increased consistently over the past seven to 10 years at both the state and federal level, and the additional impost is a burden for foreign investors in real estate.”

The lack of consultation with industry players regarding the tax hikes in the last decade has led to some foreign buyers becoming “concerned and frustrated” with property transactions in the country, according to Mr Chye.  

“When these buyers look to acquire a project, the numbers they put in might change and the costs for stamp duty or land tax may significantly – and unexpectedly – increase,” he said.

But while the high tax rates in the country continue to have a major bearing on buying decisions, Mr Chye said that this is offset by Australia’s status as a beacon of stability for real estate investors. 

He also noted that the strong price growth across the country — particularly in Sydney and Melbourne has also driven interest from foreign buyers. 

“Prices have increased significantly over the last 18 months and there’s still no doubt Australia and its major cities are a huge attraction for foreign investors whether it be for business or personal reasons,” Mr Chye stated. 

And while he acknowledged that China has significantly scaled back its presence in the local market, he expects a rebound in the coming months. 

“The recent harsh lockdown restrictions in China have created more interest in investing here. The key challenge is not the desire but the ability for foreign capital to be physically transferred here, as certain countries have tightened their controls around money leaving the country,” he said.

Mr Chye said the current uncertainty in global markets is also unlikely to dampen interest in Australian property assets.

“Inflation and interest rate increases are common across the globe so if rates go up, it will put pricing pressure on property, however, the demand will still be there. 

“The pricing pressure will be global so from that perspective, it should not detract from investors looking to acquire Australian property assets,” he said.

However, the expert also raised awareness about potential events that could upend this trend. 

“[If] there continues to be a trend of continued tax increases or removing of tax concessions solely focused on foreign investors, this will no doubt hurt Australia’s reputation and standing as a stable jurisdiction for foreign investors into Australia,” he warned. 

He further cautioned that this would make other markets such as the US, Canada and the United Kingdom will increasingly look more attractive as alternative destinations for real estate investments. 

Whether you are financially committed to another property, relocating for a new job, or simply want to capitalise on the strong capital growth in your area, sometimes it’s necessary to sell your house or investment property as fast as you can. 

Whatever the case may be, selling your property quickly and at the best possible price can only be achieved by making the right preparations. 

By planning ahead of time, your property will be ready once it hits the market and can be snapped up by the right buyers. 

Here are our top tips to speed things along and sell your property quickly.

Tips to selling your property faster 

1. Work with the right agent 

If you want to get your property off your hands quickly, having the right people in your corner can make a massive difference.

For most experts, hiring an experienced and knowledgeable real estate agent is the first step to achieving a fast sale. 

It’s no secret that selling property can be an overwhelming process. However, if you’re looking for a quick sale, the short timeline can make the process even more stressful. 

A real estate agent will help you handle matters from start to finish, from hiring a professional photographer who will take top-notch photos of your property to negotiating for the best price. They also will write up a real estate listing that sells, schedule and host showings, and employ the best marketing strategy for your property. 

The ideal agent will know the local market and how it compares with other property markets. They will also have a reputable sales record that proves they know how to walk the talk. 

It’s also important to look for someone who is as invested in selling your home or property as you are, which means someone who will tell you exactly what you’re doing wrong and how you can improve it – not someone who will just robotically schedule open houses and do the bare minimum. 

Sellers should prioritise hiring a real estate agent that is passionate about their work and is committed to providing their clients with the best outcome. For more information, here is our full guide on how to find the best real estate agent when you’re selling your home. 

2. Price your home to sell 

One of the best ways to sell your property fast is to price it competitively. Remember that for most potential buyers, price is everything.

One biggest mistake sellers make when pricing is that they think their home is worth higher than everyone else’s and expect the market to love it as much as they do.

If you set your price point too high, it may scare away potential buyers from the get-go, and then your home will spend more time on the market.

In the worst-case scenario, having an overpriced property may result in you selling it for less eventually – it will just take a lot longer.

While everyone wants to make as much money as possible from their property sale, it’s important to be realistic. 

The first thing you have to do to attract prospective buyers is to make sure that your listed price is fair. Be objective and compare your property to other similar properties that have recently sold or are currently for sale in your area.

You can also have your home professionally valued, and this will give you an accurate price point to begin with.

Listing your home at a reasonable and competitive price will help to generate increased interest and sell your property faster. 

3. Roll out a full-scale marketing strategy for your property

Nowadays, most sellers think that the only way to market their property is through online platforms. 

However, when you’re in a rush to sell a property, it’s important to execute a full-scale marketing strategy that will go beyond virtual advertisement, social media, and online listings. 

Remember that buyers come from all different places, and if you want the best buyer and the best price, you must cover all your bases and make sure you have a complete marketing strategy. 

Usually, you only get one chance to sell your property right, so have every marketing channel working for you from day one.

Aside from online platforms, make sure to explore the use of traditional marketing channels such as newspaper ads, printing flyers or newsletters. You’d also be surprised how simple signage on your front lawn can drum up interest in your property. 

3. Declutter, clean, and style your property 

Are we suggesting that you declutter and “Marie Kondo” your property if you want to make a quick sale? 

We are – but it’s just not us who are recommending it. It’s a consensus among real estate agents that decluttering (in addition to a thorough cleaning of the premises) is a sure-fire way to sell fast. 

This is because when buyers scout out properties, you can expect that the first thing they do is to picture themselves occupying the space. However, they won’t be able to do this if your house is a mess.

Give your home a thorough cleaning from top to bottom, get rid of clutter, and hide personal items. Clear crowded shelving units and keep only a few key pieces on display. Stash away magazines, papers, toys, phone-charging cables and other knick-knacks. You’ll be amazed at how clearing all the horizontal surfaces can change the look of a room.

While you’re at it, rearrange the furniture so your home looks inviting and so buyers can move through your home without bumping into anything. If necessary, put bulky items in storage. A crowded room looks like a small room.

If you’re not really into interior decorating, consider hiring a property stager that will showcase your home and its best features, impress potential buyers, and sell it quickly for the best possible price.  

Property styling, or home staging, is relatively new in Australia. It focuses on maximising the space for appeal and flow. It can involve anything from tidying up, decluttering certain rooms and adding a few cosmetic touches (partial home staging) to a full service where a dedicated home staging service brings in their own furniture and accessories.

Home staging can be expensive, but it can also be worth the cost. A recent study showed that property staging could earn you between 3 per cent and 10 per cent more on your sale price.

Property staging was also shown to improve sell times, as the study revealed 49 per cent of staged homes sold in the first week. 

Make sure to consult with your real estate agent before working with home stagers or property stylists. 

4. Boost your curb appeal

If you want to sell quickly, then it’s essential to make a good first impression.

The first thing a buyer sees is a home’s exterior and how it fits into the surrounding neighbourhood. If prospective purchasers look at a photo of a house or drive by and find the outside is not appealing, oftentimes, they don’t even bother to come inside. 

Here are ways to boost your curb appeal: 

• If there is a yard, mow the lawn, rake dead leaves, sweep pathways, weed garden beds.
• Clean the front fence and make sure that the gate swings open easily.
• Remove garden waste and gardening equipment.
• Strategically position and arrange any outdoor dining furniture.
• Paint the front door.
• Wash windows.
• Fix broken light fixtures and mailboxes.
• Plant colourful flowers.
• Trim surrounding trees and shrubs 

Keep in mind that a tidy exterior not only looks nice but also tells potential buyers that you’ve taken good care of the place.

5. Do quick repairs

Because you’re in a rush to sell your property, you will not have time to undertake any major renovations.

Even if major renovations are out of the budget (or the time constraints), you can focus on quick repairs that could deter potential buyers. 

Survey the property and take time to fix up minor issues, which can include: 

• Fixing loose tiles
• Tightening leaky faucets
• Touching up paint
• Tightening door knobs and handles
• Removing carpet stains

Depending on how much time and money you want to spend getting the home ready, you might also want to update fixtures, purchase new appliances, and install new hardware on the cabinets.

Paying attention to the details and taking care of small issues can really make a difference, as there’s nothing worse for potential buyers than viewing a property and noting all the little things they need to take care of before they move in. Don’t give buyers any reason to think there’s lots of work to be done that will cost them both time and money.

6. Get feedback 

If you have owned a property for a long time, chances are you are accustomed to how it looks and feels. This familiarity often makes it harder to see detractors such as potential problems with curb appeal, or even odd smells as you walk inside. 

A trusted friend or acquaintance might be able to remind you to trim that overhanging tree, tidy up the garden, or give the carpets a deep clean. This is also when a perceptive real estate agent can lend a hand to provide feedback. 

It’s also important to acknowledge the feedback that may come from potential buyers and their perspectives of how much your property is worth. 

For example, you have encountered buyers that were ready to buy but chose not to go with the purchase after inspecting your property. These buyers are usually savvy and often not prepared to compromise. They will also provide fairly accurate price feedback because they see it for what it is and have no emotional connection to your home.

Make sure your real estate is always following up with buyer’s agents to get their opinion on the property and finding out what buyers liked or didn’t like about what they saw. Then use that feedback to make changes as necessary.

In some cases, you may meet buyers who are interested in your home, but they will lowball you on the property. They will usually give slightly lower price feedback initially because they are interested, but they are trying their luck. 

Instead of ignoring these offers, respond with a reasonable counteroffer – at least then, it’s up to them to walk away or to continue the conversation if they have a genuine interest. This is where the right agent will help you hold your nerve and negotiate your way to the best outcome for both parties.

Sellers need to be realistic that not everyone is going to love their property. Don’t get discouraged when you get feedback about your property. The important thing is to take them in stride and make the necessary changes to position it for a successful sale. 

7. Be ready

The main trick to selling a property fast is to be ready at any time for any request from potential buyers.

Be prepared to accommodate any prospective buyer that comes your way, especially those who want to make a last-minute viewing. Remember, it only takes one to make the sale!

Unless it’s truly impossible, rearrange your schedule around what’s ideal for the buyer, not what’s ideal for you. If you suggest a new time than what’s requested, the buyer or their agent may not be able to make it work and so may just pass on visiting the property entirely.

Disclaimer: This is a general guide only and is not intended as a substitute for financial advice.