Hi guys
I'm just wanting to know what's the most effective way to pay the outgoings for your investment properties. At the moment i have one IP but have aspirations to have many more in the years to come.
At the moment my IP is managed through an agent and they simply deduct bills (rates, water, owners corp, insurance) from that months rent.
This appealed to me as i consider it as 'taken care of' and it's something that i don't need to worry about especially when on holidays. I guess another added benefit is that at tax time it can make my accounts job easier as well. (I do keep in addition a spreadsheet to record all in and outgoings anyway though)
I'm considering having a dedicated credit card(with flybuys/awards points) for all IP outgoings. I'm sure i can setup a direct debit so that the rates, water, owner corp, insurance is all charged to the credit card. when the balance is due each month the card can be automatically paid in full with a direct debit arrangement which will debit my offset account to pay the cards balance.
I've taken up the following card ( https://www.nab.com.au/wps/wcm/connect/nab/nab/home/personal_finance/4/22 ) which allows me to pay 0% interest on balance transfers AND purchases till 2012 (special offer ends 18 march 2011) - this sounds like a exceptional deal.
I'm thinking of having one credit card for everyday expenses and another reserved to pay for IP outgoings
Alternatively (but not to confuse things too much) nab also offers an 'additional card holder' at no extra cost. This would mean having one credit card account with 2 credit cards both with different numbers printed on the cards. I'm considering using the primary card to pay for everyday living expenses and have the additional card reserved for IP outgoings. The benefit here is that if my primary card is lost i wouldn't need to re-setup the direct debits for all the companies that debit the additional card number.
I'd love to hear how some experienced IP owners manage this / can share what scalable system works for you
Thanks
BigV
I'm just wanting to know what's the most effective way to pay the outgoings for your investment properties. At the moment i have one IP but have aspirations to have many more in the years to come.
At the moment my IP is managed through an agent and they simply deduct bills (rates, water, owners corp, insurance) from that months rent.
This appealed to me as i consider it as 'taken care of' and it's something that i don't need to worry about especially when on holidays. I guess another added benefit is that at tax time it can make my accounts job easier as well. (I do keep in addition a spreadsheet to record all in and outgoings anyway though)
I'm considering having a dedicated credit card(with flybuys/awards points) for all IP outgoings. I'm sure i can setup a direct debit so that the rates, water, owner corp, insurance is all charged to the credit card. when the balance is due each month the card can be automatically paid in full with a direct debit arrangement which will debit my offset account to pay the cards balance.
I've taken up the following card ( https://www.nab.com.au/wps/wcm/connect/nab/nab/home/personal_finance/4/22 ) which allows me to pay 0% interest on balance transfers AND purchases till 2012 (special offer ends 18 march 2011) - this sounds like a exceptional deal.
I'm thinking of having one credit card for everyday expenses and another reserved to pay for IP outgoings
Alternatively (but not to confuse things too much) nab also offers an 'additional card holder' at no extra cost. This would mean having one credit card account with 2 credit cards both with different numbers printed on the cards. I'm considering using the primary card to pay for everyday living expenses and have the additional card reserved for IP outgoings. The benefit here is that if my primary card is lost i wouldn't need to re-setup the direct debits for all the companies that debit the additional card number.
I'd love to hear how some experienced IP owners manage this / can share what scalable system works for you
Thanks
BigV