Wednesday, 17th May 2017
New build investment properties are the winners with incoming Federal Government budgetary measures, set to remove depreciation entitlements from properties built prior to September 1987.
The Federal Government's cost saving initiatives mean investors owning older properties could potentially lose out on up to $10,000 a year or more in tax credits.
Investors can continue to claim on the building structure for properties constructed post 16 September 1987, but they must have a depreciation schedule from an accredited Quantity Surveyor.
Meanwhile, investment properties with contracts that went unconditional prior to 9 May 2017 will not be affected.
These changes reinforce my long-held belief that new property is the right strategy for most investors, with the greatest depreciation claimable for the life of the original owner.
For investors carrying older properties in your portfolio, it's essential to note that using a Quantity Surveyor can only be a good thing. While a Depreciation Schedule costs between $600-800, it's a fully tax deductible expense and will ensure you get the maximum claimables from the Australian Taxation Office.
But if you think it's time to move on and update your residential investment portfolio with a more tax effective property, please give me a call on 0437 890 831 to discuss your options. There's no point carrying dead weight in your portfolio if you stand to do better by upgrading. We can discuss your overall portfolio options to ensure you achieve your long-term wealth creation goals.
Until next time,