Insider Tips to Help You Discover How to Succeed with Commercial Property
GREAT NEWS: The Australian Taxation Office (ATO) has made further changes to the rulings surrounding immediate write-off and pooling of small business assets.
If you’re a small business owner (and/or Commercial property investor) … read on to find out how these changes affect you. [Read more…]
DID YOU KNOW that you can claim quite significant depreciation deductions for an Industrial property? Because, legislation set down by the Australian Taxation Office (ATO) allows the owners of any income producing property to claim depreciation. [Read more…]
BEFORE YOU PURCHASE a Commercial investment property, make sure you crunch the numbers. If you appropriately claim property depreciation, you can significantly increase the return on your investment.
More often than not, investors fail to realise the financial benefit of claiming depreciation prior to making their purchase. [Read more…]
ARE YOU FAILING to take advantage of the depreciation deductions available on your property because you believe your property is too old to warrant making a claim?
Your assumption is wrong and you could be missing out on valuable deductions. [Read more…]
Commercial Vs Residential Property.
LAST WEEK, we covered the different types of Depreciation and the depreciation rules for tenants in Commercial properties.
Read on now, for the rules for claiming occupancy in a Commercial/Residential property — plus another useful tip, when it comes to when claiming deprecation. [Read more…]
THIS IS THE FIRST of a 2-part article, to help provide you with a useful comparison between the depreciation of Commercial and Residential property.
Investors considering purchasing an investment property will often enquire whether a Commercial or a Residential property will provide them with more deductions in the form of depreciation.
However, there are many important factors you need to be aware of when making a choice between these two investment options. [Read more…]
IF YOU OWN an Australian property built prior to 1980, there is an increased chance that some form of asbestos material was used in its construction.
If left intact, asbestos does not usually pose a health risk. However, when asbestos has been disturbed or damaged — the fibres within it become a health concern to anyone exposed.
Due to the serious health risks associated with asbestos, there are now laws relating to asbestos in most states and territories across Australia. [Read more…]
THE AUSTRALIAN Taxation Office (ATO) has released a new tax ruling — effective from the 1st of July 2013.
Replacing Tax Ruling 2012/2 , Tax Ruling 2013/4 explains the methods you should use when determining the effective lives of depreciating assets.
While Table B of Tax Ruling 2013/4 lists the effective lives of depreciable assets currently recognised by the ATO.
The tax ruling in effect at the time you acquired an asset determines the effective life of that asset. Therefore, any changes the ATO have made to the effective lives of assets in Tax Ruling 2013/4 — only affect assets purchased and installed for use after the 1st of July 2013. [Read more…]
SIMPLER DEPRECIATION LAWS have recently been introduced to assist small businesses — which take effect as from the 2012-2013 financial year.
Under GST rules, every Commercial investment property is deemed to be a “going concern” … or in other words, a business. Therefore, you could qualify to benefit from the instant asset write-off threshold having been increased to $6,500.
This new rule allows businesses to write-off any depreciating asset with a total cost less than $6,500.
Previously, the cost threshold was $1,000; and anything over this cost could not be claimed as an instant deduction. [Read more…]
IN MANY CASES, commercial properties are positively geared. And that means their rental returns are often higher than loan repayments and outgoings for the property.
What what you may not realise is that the income received from a positively geared property can have avoidable tax implications.
Claiming depreciation on a positively geared commercial property can help you substantially reduce your overall taxable income, and further improve your after-tax cash position.
Self Managed Super Funds and Property Depreciation (Part 2)
IN THE FOLLOWING EXAMPLE, your SMSF owns a commercial warehouse purchased for $700,000 with a rental income of $1,200 per week … resulting in a total income of $62,400 per annum.
Expenses for the property such as interest, rates and management fees totalled $42,000. Therefore, the net earnings of this commercial property was $20,400.
Without claiming depreciation, your SMSF would have to pay 15% tax on the net earnings, which would result in a tax payment of $3,060. By claiming $14,500 in tax depreciation, the total earnings is reduced to $5,900 leaving the total tax payable of just $885. [Read more…]
WITH EVERY NEGOTIATION, you always need to be thinking on your feet. And here are several simple Tips to help you do just that.
WHEN YOU EMBARK on your journey as a property investor, it can be overwhelming – with a flood of information and diverse opinions. To help simplify the process, here are five essential tips for new (and seasoned) investors.
IT DOES NOT MATTER whether you’re an investor or an owner-occupier, there are several important factors to consider when purchasing a commercial property to ensure you make the right choice.
In a previous article, I shared a handy App to assist you in shortlisting potential properties. If you haven’t already downloaded it, simply click on the HiReturn Filter over on the right, to install it on your tablet or mobile device.
THERE IS A BELIEF among many experts that a surge in the stock market typically precedes a recovery in the commercial property market by about six months. And the start of this year saw equity markets gaining some momentum.
I HAVE BEEN ASKED countless times about the secrets to a successful negotiation. And I want to share with you the key elements to help make your negotiations effective.
But first, just watch this short video to gain a quick understanding of these three essential elements that form the foundation of every negotiation.
If you’re new to investing, you might be wondering if it’s possible to manage your own commercial property. The short answer is “yes”, but only if you know what you’re doing.
It’s important to note that owning a commercial property comes with certain legal responsibilities, particularly when it comes to compliance with Essential Services requirements under current Building Regulations.
The current trends in the business have made it clear that office landlords have to cater to the needs and preferences of their tenants. Building owners and managers (who understand and meet these demands) will be able to command higher rents and reduce vacancy rates.
To expand on this, here are four key tips to help attract quality tenants.
