A RECENT REPORT (prepared by CBRE) explains the changes being forced upon traditional retailers by the growing level of online and customer direct activity.
As such, they are predicting the need for a much improved in-store experience over the next decade – if bricks-and-mortar retailers are to remain competitive.
Static shop window displays will need to be replaced with ever-changing virtual showrooms – to attract and keep customers interested. [Read more…]
CLAIMING PROPERTY DEPRECIATION is paramount for commercial business owners. And yet, research suggests around 80% fail to maximise the deductions available to them.
As a result, they miss out on thousands of dollars.
With a commercial property, both owners and tenants are eligible to claim depreciation deductions simultaneously, so it’s important that both parties contact a specialist quantity surveyor to organise a tax depreciation schedule.
A depreciation schedule will outline all available deductions over the life of the property.
Under Tax Ruling 97/25, quantity surveyors like BMT Tax Depreciation are one of the only professions qualified to estimate construction costs for depreciation purposes.
Justin’s company owns a commercial office building purchased for $820,000 and rented for $1,050 per week or $54,600 per annum.
Expenses for the property including interest, rates, property management fees, repairs and maintenance total $57,088.
Without depreciation, Justin’s company is experiencing a loss of $34 per week on the commercial office building.
Justin contacted BMT Tax Depreciation and found his business could claim $40,080 in depreciation deductions for the property in the first financial year alone.
The following table shows Justin’s scenario before and after his company made the depreciation claim for the property.
By claiming depreciation, Justin improved the loss of $34 per week on the company’s property to a return of $198 per week. This improved the tax refund for the property by $12,024 in the first financial year.
As the case study shows, claiming property depreciation deductions can have a significant impact on a commercial business owner’s cash flow position.
Bottom Line: A BMT Tax Depreciation Schedule details all available deductions over the lifetime of a property to ensure investors maximise their cash flow. Schedules have a one-off fee; and are totally tax deductible.
IT WOULD SEEM the growth in eCommerce is creating a surge in speculative Warehouse development. And along the east coast, the volume of new space to 30 June has exceeded that for the whole of 2018.
During last year, there was 422,000 sqm of speculative development. And yet there have already been over 550,000 sqm of space built so far this year. [Read more…]
MANY INVESTORS tend to stay within their comfort zone when it comes to investing in property. And typically, this means they merely purchase residential houses and apartments.
However, investing in commercial property has become more popular in recent times as investors look to diversify their portfolio and seek out affordable alternatives in a tightening residential market.
Unlike residential property, vacancy rates for commercial property are low and this combined with higher returns and depreciation benefits means there are several reasons to consider commercial properties as a potential investment.
We’ve taken a look at some reasons why commercial property is worth adding to your property portfolio. [Read more…]
AS INDUSTRIAL land becomes scarce and more expensive, you will begin to see more multi-story warehouses emerge.
The first such major project is about to start in Revesby, in Sydney’s west. [Read more…]
THE CBD VACANCY rate for Sydney currently sits at 4.1%. And for Melbourne, it’s now at 3.8%.
As you would expect, overseas events have caused some hesitancy in the market. And the Sydney CBD can be rather sensitive to the global economy.
That said, recent reports show local business confidence growing – with stability appearing to return, after the recent election. [Read more…]
WITH TAX TIME upon us, you’re probably preparing to visit your accountant – to complete your annual income tax assessment.
Getting your tax in order can be an overwhelming task, but when you have a commercial investment property it can seem even more complex. [Read more…]
BORROWING THROUGH a Self Managed Super Fund (SMSF) to acquire commercial property has been a popular and attractive strategy over recent years – due to the tax benefits, and ability to minimise personal guarantees. [Read more…]
THERE HAS BEEN a rise in demand for industrial property in recent years, particularly for warehouse storage space.
This is due to the so-called ‘Amazon effect’ which has resulted in an increase in online retailers requiring the space to store, pack and send orders. [Read more…]
ACCORDING TO JP MORGAN, the expected trade war should only shave about 0.07% off Australia’s GDP over the next couple of years. [Read more…]
WHAT AN AMAZING election result … although, I had always felt it would be a lot closer than everyone thought. Now many people are now asking how the pollsters could have got it so wrong?
In actual fact, they weren’t that far out. Rather, it was more a heavy bias in media coverage which fanned the Labor fever.
