The Young Investor

All types of income producing properties have substantial taxation benefits available to be claimed as a tax credit. Many property investors are missing out on thousands of dollars in tax depreciation deductions. Both new and old properties will attract some depreciation benefit that the owner is able to claim as a tax credit. A […]

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The depreciation benefit to every investor will vary. The following example has been provided as an approximate guide, using the diminishing value of depreciation.
Property:
A two bedroom unit purchased for $400,000
Income:
Rented for $385 per week
Total income of approximately $20,000 per year
Expenses:
Interest, rates and management expenses $32,000 per year
Scenario 1 – No depreciation claim:
Pre tax cash flow
Taxation […]

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1. If my property was built before 1985, is it too old?
No. It is worth noting that:
? Your investment property does not have to be new: Both new and old properties will attract some depreciation deductions. A common myth is that older properties will attract no claim.
? You can adjust previous year’s tax returns: When […]

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There is a lot of confusion regarding auctions, why it is different to a normal sale, what the terms mean, what conditions need to be met and just exactly what “vendor bidding” is versus “dummy bidding”, and why one is illegal and the other isn’t (guess which!), so here’s a quick overview of the laws […]

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In order to maximise the tax benefit your investment property will attract, you will require the services of a recognised Quantity Surveyor with specific property tax depreciation skills and experience. To ensure you claim all your entitled depreciation deductions a site inspection will need to be carried out as this will accurately identify all items […]

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In terms of depreciation, what should you consider when making an investment property purchase decision?
If you are looking to purchase an investment property, it is worthwhile asking yourself a number of questions. While many investors consider location, purchase price and tenanting ability when contemplating an investment property purchase, they often overlook depreciation as an […]

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