There May Be Cash Hidden Within Your Property

Hidden Cash

AS YOU ARE probably aware, property depreciation is mostly claimed by the owner of an income-producing property. And it’s for this reason, that many commercial tenants often miss out on the hidden cash available to them through depreciation.

Commercial tenants can claim depreciation deductions based on any fit-out or plant and equipment assets that they add to the property. [Read more…]

When is a Bank Guarantee NOT Guaranteed?

Dollar

YOUR TENANT’S OBLIGATION to pay rent, care for the premises and abide by the provisions of the lease is usually secured by your right (as the landlord) to terminate the lease and recover possession.

In reality, this does little to remedy the financial loss suffered by a landlord, as a result of a breach by the tenant. [Read more…]

Super SUPER — Lending to Your Personal Super Fund

Lend-to-Super

ARE YOU THINKING about borrowing to buy property or other assets via a Self-Managed Superannuation Fund (SMSF)?

If so, you may be wondering whether you need a bank to lend directly to your SMSF; or if there is a simpler and cheaper way to borrow? [Read more…]

How Will Tax Ruling 2014/4 Affect Your Claims?

TaxRuling

THE AUSTRALIAN Taxation Office (ATO) has released a new tax ruling, which is effective from the 1st of July 2014.

Replacing Tax Ruling 2013/4, Tax Ruling 2014/4 explains the methods to be used when determining the effective lives of depreciating assets.

The tax ruling in effect at the time an asset is acquired determines the effective life of that asset. For this reason, any changes the ATO have made to effective lives of assets in Tax Ruling 2014/4 will only affect assets purchased and installed for use after the 1st of July 2014. [Read more…]

Office Markets Around Australia

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CBD-Offices

NO LONGER are the Office markets in sync, for the main capital cities around Australia.

During the last century, the CBD markets seemed to operate within a fairly regular 18-year cycle — in other words, from “peak to peak”.

However, all at ceased when the Global Financial Crisis hit in 2008. [Read more…]

Important Tips for Development Finance

development-finance

IF YOU ARE funding a property development, financing is the most important aspect to consider. After all, without finance the project cannot proceed.

Below, I have summarised the three most important factors for getting bank funding for a project. [Read more…]

7 Tips to make the Most of Your Commercial Property at Tax Time!

Taxtime

SEVERAL PEOPLE have asked how to pay less tax on on their investment properties. Therefore, we’ve put together a list of our best 7 tips to help you save money at tax time.

1. Loan Interest

While a property is rented, available for rent or in the process of being built for rent, loan interest is tax deductible?– even if it is still at planning stage.

This includes the interest you pay on money you use to purchase or improve the property. [Read more…]

Prime Cost or Diminishing Value … for Commercial Property?

Senior man being puzzled with tax documents

THE AUSTRALIAN Taxation Office (ATO) allows investors to choose between two alternative methods of claiming depreciation on plant and equipment assets. The diminishing value and the prime cost methods of depreciation.

When you make a depreciation claim, you can only choose one of these methods. It is important for you to understand how your choice will affect your investment returns. [Read more…]

Understanding Commercial Property Yields Overall

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OfficeSkyline

WHENEVER YOU CONSIDER Commercial property, it’s important to fully understand what the overall Yield is likely to be.

And the simple formula to arrive at an estimated overall figure is:

Yield = Income + Capital Growth

And investors often ask me … How do average Yields vary from one sector of the Commercial property market to the other. [Read more…]

Commercial Property Owners: Your Complete Depreciation Checklist

Mature couple doing family finances

THE END OF FINANCIAL YEAR may have come and gone but there is still time for commercial property owners to arrange a tax depreciation schedule. You could claim thousands of dollars in depreciation deductions.

Australian Taxation Office (ATO) legislation permits the owner of any income producing property to claim depreciation in two ways:

  1. Capital works deductions
  2. Depreciation for plant and equipment assets [Read more…]

FIRB Approval for Commercial Property

FIRB-approval

YOU SHOULD BE CAUTIOUS when entering into negotiations with foreign purchasers for the sale of property, due to the restrictions imposed by the Foreign Investment Review Board (“FIRB”).

Vendors should ensure that the contract of sale protects them when approval is required by the FIRB. Because, if the purchaser fails to gain approval, the FIRB can reverse the transaction. [Read more…]