money money money tii: turning your home into an investment property
Jul 31, 2025
Considering turning your home into an investment property? Discover essential steps like property valuation and the impact on capital gains. Get insights into mortgage options and the importance of maintenance costs. Learn why collaborating with accountants is crucial for maximizing tax deductions. Understand the difference between bank valuations and those from real estate agents. Finally, uncover key tips for managing rentals, including the benefits of hiring a property manager and securing landlord insurance.
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Get Professional Valuation Early
- Get a professional valuation when switching your home to an investment property to establish its value at that time.
- This valuation is crucial for calculating capital gains tax accurately when you sell later.
Review Mortgage Options
- Review your mortgage when converting your home to an investment property, considering options like interest-only periods.
- You don't have to change your home loan, but adjusting it can optimize your tax position and cash flow.
Handle Maintenance Costs Smartly
- Distinguish between maintenance expenses you can claim fully and those to add to depreciation schedules.
- For example, claim small repairs fully but capitalize big items like new carpet to depreciate over time.
