Property Investing
Why 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…
Read MoreDraft Legislation for Depreciation Changes Issued by Treasury
On Friday the 14th of July, the treasury finally issued their draft legislation relating to the changes to depreciation for plant and equipment items. Personally, the most positive thing about the draft is that it’s silenced the fear-mongering commentators saying that depreciation on plant and equipment would be stripped from new properties. This was never…
Read MoreIs a commercial property investment something you should consider?
When the Federal Government announced 2017-18 Budget measures to limit tax depreciation claims against second-hand residential investment properties, market experts predicted that many investors would turn their attention to commercial property investment. Is a commercial property investment something you should consider? There are plenty of reasons to have a look: Longer term tenants A typical…
Read MorePlant & Equipment Depreciation Changes – 2017 Budget Measures
The announced budget changes by the treasurer Scott Morrison, effectively take a sledgehammer to residential depreciation legislation that hasn’t really changed since 2006. The Reserve Bank only has a blunt instrument to work with, in changing the cash rate to curb/stimulate inflation, but fiscal policy can be far more nuanced. The Government opted against a…
Read MoreAnalysis of the Budget Changes to Tax Depreciation on Plant and Equipment
UPDATED 11/5/2017 If you’re not already aware, last night’s budget announced some major changes to tax depreciation that will have a huge impact on quantity surveyors preparing depreciation schedules and residential property investors. I’ve been fielding calls and emails from accountants, investors and quantity surveying firm directors through the evening. There are two main ‘buckets’…
Read MoreHow to use investment property tax depreciation to maximise cash flow
Investment property tax depreciation allows you to claim a tax deduction for the wear and tear of the structural elements (the actual building) and plant and equipment (fixtures and fittings) of an investment property. By claiming depreciation as a tax deduction you can lower your taxable income. This in turn reduces the amount of income…
Read MoreThe Melbourne Residences – Rippling Facades and Ripping Deductions
If there’s one thing we love, it’s repeat clients. Obviously, it’s great to do another schedule and that they trust us as the depreciation experts, but what excites us more is that our investor clients and building their portfolio and hopefully dramatically changing their retirement lifestyle in the process. This repeat client bought a unit…
Read MoreHow an investment property depreciation schedule will put money back in your pocket
An investment property depreciation schedule is basically a summary of the tax deductions you can claim for the depreciation of your investment property. This can include structural elements like bricks and concrete and also “plant and equipment” components such as ceiling fans, blinds and the dishwasher. Each depreciable item is evaluated to figure out how…
Read More181 Fitzroy Street, St Kilda – Super depreciation, and a pool to die for.
The view from St Kilda back to the CBD over Albert park is not often showcased, but it’s a spectacular one. Taking full advantage of this is the new development at 181 Fitzroy Street St Kilda. This retail/residential mixed use building comprises 46 two bedroom and 68 one bedroom apartments over nine levels. As described…
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