IT IS WELL KNOWN that you can claim wear and tear on a business vehicle. But do you know exactly how much wear and tear you can also claim, on your investment property?
You see, many property investors are unaware how significant the tax depreciation deductions their investment properties hold – meaning they could be missing out on thousands of dollars. [Read more…]
AS OF 1 JANUARY 2017, Victorian land owned by an “absentee owner” is subject to an additional 1.5% Absentee Owner Surcharge. The purpose of the surcharge is to require foreign buyers, who do not pay other taxes, to contribute to government services and infrastructure in Victoria.
Although this surcharge also applies to commercial property, it was originally introduced as an attempt to manage foreign purchasing of residential real estate in Victoria – to assist with housing affordability. [Read more…]
EVERY INVESTOR would like to be in a position to pick the top and bottom of each Cycle, when it comes to commercial property.
And if you had followed things closely during last century, you would know forecasting this used to be relatively straightforward – with all the various Office markets following a fairly predictable sequence, as shown below. [Read more…]
AS AN A INVESTOR, once you start claiming depreciation, you’ll notice a big improvement in your cash flow.
That’s because depreciation effectively lowers taxable income – and that means more money back in your pocket come tax time.
For most investors, the extra cash goes into savings. Or is put towards a holiday, or a new car. Or simply used for everyday living expenses.
However, there are far smarter ways to use the extra cash you gain from depreciation. And here are just a few. [Read more…]
AS I EXPLAIN to my Mentor group, there is a certain rule of thumb for Office market vacancies around Australia.
And it’s really quite simple: For an office market to be “in balance” you really need to have a vacancy rate of between 6% to 8%.
It’s a bit like the unemployment rate. You see … a 5% unemployment rate – effectively means FULL employment – because anything lower than this … is starting to put pressure on wages. [Read more…]
LET’S USE HOTELIERS as an example. When they request a tax depreciation schedule for their property, there are usually three main scenarios:
WHEN INVESTING IN Commercial property, one of the major attractions for investors is the cashflow available. And locking in a guaranteed cashflow, via fixing your loan can be an attractive strategy.
However, there are a number of things that should be considered, before deciding to fix your interest rate. Here are some of the most important questions to ask yourself when deciding. [Read more…]
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DID YOU KNOW super fund members are some of the biggest landlords in our capital cities?
They own a share of offices, hotels, warehouses and shopping centres. The more cash in super funds, the more properties are bought – indirectly exposing fund members even to some of the most iconic office towers in capital cities. [Read more…]
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With tax time upon us, many property investors will be preparing to visit their Accountant to complete their annual income tax assessment.
Getting your tax in order can be a confusing task at the best of times, but when you’ve got a commercial investment property, it can get even more complex. [Read more…]
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A RECENT SURVEY conducted by CBRE has revealed growing investor demand for industrial property – at the expense of the retail sector.
This would appear to be mainly driven by the increasing need for warehouse space by online retailers – and in particular, Amazon. [Read more…]
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THE HIGHER RENTAL RETURNS of commercial property make it more attractive to investors, especially those who are planning for their retirement. They often buy and hold commercial properties in their SMSF for a better tax environment. [Read more…]
