Assets can be a great way to earn an income – whether it be your primary or secondary source. But it can be difficult getting the most out of your assets if you lack the knowledge on how to take advantage of them. As we know, shares are essentially anything that you own that can be converted into cash – such as property, shares or art, to name a few. Today’s blog will be concentrating on what our Heidelberg accountant’s think is the best way that you can take advantage of these assets and put them to work for you.
Property is usually the type of asset that people think of when they hear the word. This may predominantly be because property can – if done correctly – yield such a large income flow. There are a variety of things that you can do to ensure you’re getting the best rental return from your property. Some of these include:
- Renovating when required – Keeping your property fresh and updated is essential. This could be something as small as a fresh coat of paint or some chic outdoor furnishings. Or, you could opt for installing some updated appliances. If you currently have people renting your property, then they’ll appreciate the updates.
- Don’t over or under charge – Know how much your property is worth. If you’re undercharging then you’re cheating yourself, and if you’re overcharging then you risk not pulling in any new tenants. If you renovate and update your property, then potential tenants will be more likely to comply with higher rates – as they’ll see it’s worth it.
- Debt – You can use debt to your advantage by either negatively or positively gearing your property to effectively boost returns. If you’re looking to sell your property, then keep the tax laws
Shares and diversification
Buying shares in the share market can be a great long-term investment opportunity. But, don’t forget that the share market is just a form of gambling, and it can go either way. Looking at trends is one of the best ways to invest in shares. Diversification is where you spread your share market portfolio across a variety of different share options.
By laying out your money across shares from varying companies and with different values you can guarantee no hard falls if a particular company goes under or a financial event ensues. With your money diversely managed, you won’t lose a lot if something bad happens. Ideally, you should invest in some high-risk shares as well as some low-risk shares.
Of course, this also means if prices go up within a particular company then you won’t be able to take full advantage of that as much as if you had put all your money into their shares. At the end of the day, the higher the risk you take in within the share market – the greater the reward but also the greater the fall.
When it comes to using artwork to your advantage, you have to know the industry – or contact someone who does and that you can trust. You should also consider leasing the artwork. Galleries, event spaces and businesses are a few different types of clients that you may have if you consider going down the leasing option.
If a company is planning on hosting a special event, then they may want to impress their guests with a piece of art. This can be an especially attractive option if you hold multiple pieces in your collection as it will allow you to lease to multiple clients simultaneously.
Looking for a Heidelberg accountant?
Silverdale Consulting Group is an elite accounting firm that specialises in asset management and optimisation. Our Heidelberg accountants will be able to help you identify what can be put to work in your asset portfolio and how they should be utilised. Our accountants are fully qualified and highly experienced and are also well-versed in other services such as SMSF’s and tax return as well.
So, if you require a Heidelberg accountant, then please get in contact with us by calling (03) 9497 5885. Alternatively, you can fill out the enquiry form on our website.