Insider Tips to Help You Discover How to Succeed with Commercial Property
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…]
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…]
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.
WHEN INVESTORS purchase a Commercial property, they will often consider renovating the property after settlement. Especially, if it is an older property in need of a face-lift before tenanting.
By renovating your Commercial property, you can create additional equity and generate extra rent in the process. But the real benefit is that you can also claim thousands of dollars in depreciation deductions — whenever renovations are done to your property. [Read more…]
COMMERCIAL building owners still remain unaware of the full taxation benefits their property could generate. One of the most worthwhile (yet often missed) deductions available is building depreciation.
As a building gets older and items within it age, they depreciate in value. The Australian Taxation Office (ATO) recognises this and allows property investors to claim deductions relating to the wear and tear on buildings and the fixtures and fittings within.
Claiming depreciation is the key to increasing the cash flow you generate from your Commercial properties. [Read more…]
AS WE APPROACH the end of the financial year, many Commercial property owners often seem rather confused as to all the Depreciation deductions they might be entitled to.
To help you, here are the most commonly asked questions — purely to highlight just how depreciation can significantly bolster the overall cash return you can extract from your Commercial property.
BEING A COMMERCIAL property owner, the Australian tax system allows you to claim a deduction from your income.
And that relates to the wear and tear upon the structure of a commercial property, and the depreciation of the plant and equipment items it contains.
Depreciation is available to all property owners who generate an income from that property. But the secret is to make sure you maximise these deductions, to boost your bottom-line cash flow.
By maximizing your tax depreciation deductions every financial year can make a huge difference to the tax you pay. And it may even result in the ATO paying money back to you, at the end of the year.
IN SIMPLE terms, your Depreciation falls under two separate (but related) categories:
And not everyone is in a position to acquire a stand-alone property.
More often than not, you’ll be looking to purchase a “strata-title” Office or Warehouse — involving an Owners Corporation and some common-area property.
As such, you may not be aware of the full extent of what you are entitled to, by way of your Depreciation claims.
However, by having a tax depreciation schedule professionally prepared, you can significantly enhance the overall return on your investment. [Read more…]
AS YOU WILL appreciate, being able to sleep at night is one of the key objectives for any Commercial property investor.
And that’s what many property investors refer to as staying below your “Threshold of Insomnia”.
There can be several things that might cause you to lose sleep. One is over-borrowing; and the others are making a poor assessment of the market and the property itself. [Read more…]
Did you realise that some of the repairs you make to your Commercial property are NOT necessarily deductible against your rental income?
Often, it comes down to something as simple as timing. [Read more…]
WHEN IT COMES TO MAXIMISING your property income, depreciation is a powerful tool that is often overlooked.
As a Commercial Investor, you have a unique advantage over those investing solely in residential properties.
FINANCIAL INSTITUTIONS HAVE a range of methods for evaluating commercial properties, but there are some general guidelines that they typically follow.
One of the key numbers that banks focus on is the property’s Net Operating Income (NOI), which is essentially the rental income minus expenses.
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.
