Investment Property
My favourite QS BS – The top three furphies spouted by the depreciation industry
As a Quantity Surveyor or QS if you will, I have the pleasure of a little inside information when it comes to reading some of the articles or catch phrases written by other quantity surveyors. No sour grapes here, for the most part we all get along. I have some great relationships with a number…
Read MoreDepreciable asset or repairs and maintenance? – How to make the call
Owning an investment property will invariably result in having to spend some money on it. The good news is that the tax man (perhaps we need a gender-neutral term but technically the tax commissioner is a man) will let you claim that expenditure as a deduction. However, not all deductions are equal. Spending money on…
Read MoreThe recent regulatory changes and the state of the Property Market
The January CoreLogic figures have shown that capital city dwelling values have posted their first quarterly fall since April 2016. The peak of the market was called as far back as 2016, but now we’re seeing the evidence some two years later. On a positive note, the combined regionals edged slightly higher over the Dec-17…
Read MoreHow common property assets can supercharge your upfront deductions
Most investors would be aware that if you own a unit within a complex, you’ll have an entitlement to claim over the common property assets based on your share of ownership. This percentage share is commonly referred to as a unit entitlement and can be found on your strata plan or plan of subdivision. You’ll…
Read MoreWhat is a tax depreciation schedule and how can it change your tax return?
Albert Einstein said if you can’t explain something simply, then you don’t understand it well enough. So, it’s time to test my understanding of tax depreciation schedules! A tax depreciation schedule is simply a report detailing the depreciation entitlements available to you within your investment property. The depreciation entitlements can be broken into two simple…
Read MoreOur predictions – Property Market Scorecard for 2017 and 2018
What a year property has had in 2017. We’ve seen some double-digit growth in major capital city markets and a big move from APRA in the investor lending space. We’ve also written extensively about changes to depreciation. There’s also been plenty of debate about foreign investors and housing affordability. So, what did the numbers show…
Read MoreCritical misinformation around property depreciation changes
The senate has passed the depreciation changes (as of writing it is awaiting royal assent), but unfortunately a number of large quantity surveying firms have been reporting incorrect or incomplete analysis of the changes. I’ve been modelling the impacts of the recent depreciation changes by analysing the reports in our system as well as looking…
Read MoreWhat you need to know – Investment Property Budget Changes
Investment property tax deductions hit the headlines when the 2017-18 Federal Budget was handed down on 9 May 2017. As the second biggest tax deduction after interest, depreciation deductions against investment properties save investors thousands of dollars and can make or break the profitability of a property investment What deductions can you claim against…
Read MoreWhy buying brand new is now the key to maximising your tax deductions
People often ask me questions like “I should buy a new investment property because it’s better for tax right?” The answer is yes and at the same time, no. Buying a brand-new property because of the available deductions is not a sophisticated strategy. Accountants tell me the same thing, people say they need an investment…
Read MoreOccupying your investment – The accidental investment property
We’ve often wondered how many investors convert their primary place of residence into an investment. We’ve seen a lot of first home owners buy a property for stamp duty concessions or first home owner bonuses and live in their property for 6-12 months before promptly converting it to a rental. However, anecdotally most of the…
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