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Tax Recommendations for Property Investors

July 17, 2014

low tax In an article for the website realestate.com.au, Venessa Paech talks about how property investors should approach their taxes and how best should they claim their rental deductions.

Here are 9 tax recommendations for them:

Do not claim capital improvements as an immediate deduction.
Shy away from paying prepay interest
Organise a depreciation schedule
Claim the cost you fork out to inspect properties
Use PayG Withholding Variation Application for negatively geared properties
Disclose foreign property investments
Keep receipts to justify your claims
Bring down CGT
Hire a top accountant

You can read the original article here.

Sydney Auction Clearance Rates Dip to A Year Low

July 11, 2014

In an article for the website Property Update, Andrew Wilson focuses on the declining auction clearance rates in Sydney. 72.7% clearance recorded this week is as bad as it has been in more than a year. Last year same time, the figure was 77.5%.

This is third week in trot that the clearance rate has come down. Perhaps a silver lining is the fact that a few regions have withstood the decline and posted robust clearance figures. Put another way, overall clearance for Sydney is falling but not all regions are doing badly. Case in point is 84.8% recorded by the city and east

You can read the original article here.

Investors Missing Out on Important Claims

June 19, 2014

In an article for the website Street News, Bradley Beer lends focus on how investors are missing out on claiming a couple of important depreciation deductions. Capital works deduction and plant and equipment depreciation are still being given a miss by investors, claims Beer.

Of the 2.5 million property investors, only 40% claimed ‘capital works’ and 67% claimed ‘plant and equipment’ in 2011-12. Depreciation claims of $3,168 made by residential investors is also significantly below expected standards.

Beer also sheds light on a trend which asserts that investors posting self-claims or using self judgments are more liable to underclaim.

you can read the original article here.

Property Taxes Boost Government Coffers

June 12, 2014

In an article for the website Property Update, Cameron Kusher informs that property sources make up for a bulk of tax revenue collected by the local and state governments in Australia. $35.931 billion has been collected under the head of property taxes in the financial year 2012-13.

Over the financial year, property taxes have witnessed a hike of 7.2%. Land tax, Stamp duty and municipal rates make up for a large volume of property taxes. It is interesting to note that the much-debated Stamp Duty comprises of 36% of total property tax volume.

You can read the original article here.

Mortgage Levels Show Positive Consumer Mindset

June 11, 2014

Miriam Bell’s piece for the website Your Investment Property clarifies that there is nothing to deter property investors from house-hunting. Mortgage levels are at a record high and this can be put down only partially to prevailing low interest rates. A great part of investor-loan frenzy can be attributed to consumer sentiment (which paradoxically has got a beating after the Federal Budget).

The never-before figure of $4.2 billion of loans written in May has a 40% investor share. The remaining is made up of first home buyers, next home buyers and owner-occupiers.The wide demand for mortgage brokers has also catapulted the mortgage levels. FHB share, Bell writes, is different for different territories. The range is 3.5% to 10% of the total property investments.

You can read the original article here.

68% Aussies Feel It Is a Right Time to Buy

May 29, 2014

An article on the website Your Investment Property talks about the present consumer sentiment index in Australia. While many are bullish about the signals the property market is giving, respondents in key cities of Sydney and Melbourne are much more circumspect in their response.

68% of respondents feel that now is a right time to buy. A generally positive response one supposes but nothing like the 80% recorded same time last year! The overriding fact is the change in perception- buyers thinking that most of the Australian property scene has developed into a seller’s market.

Interesting to note that 51% of respondents feel prices could rise in the next 6-8 months, a clear increase from 41% who felt so last year.

You can read the original article here.

Why do you think the number has dwindled from ‘80%’ to ‘68%’?

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