When you buy your investment property you do incur a lot of costs, however a lot of these are not tax deductible. These initial costs are considered, capital costs, i.e. the cost of buying your property. For example:

• Property Purchase Price
• Property Transfer Stamp Duty
• Legal Fees
• Pest & Building Inspections
• Strata Inspections
• Buyers Agent Fees

When your property is available for rent you are allowed to claim tax deductions for its running property: For Example:

• Bank Loan Interest (not repayments)
• Council Rates
• Water Rates
• Strata Levies
• Insurance
• Real Estate Agents Commission
• Legal Expenses
• Pest Control
• Garden Maintenance
• Repairs
• Cleaning
• Depreciation (see post on 9 April)

Please note travelling to inspect your property is no longer deductible. Any significant purchases over $300 might be subject to depreciation.