As a general rule the following costs are deductible in relation to your investment property:
- Council rates – This includes any fees which the Council has charged including garbage fees and general service fees.
- Water rates – This includes quarterly charges as well as water excess fees.
- Insurance – For building, contents and landlords insurance.
- Interest – For both the main loan, which is typically 80% or 90% of the purchase price of the property and the shortfall loan, which is typically borrowed against the equity in your home.
- Travel – Not for pre-purchase expenses or for travel