Mgr,

I’d be wary of any Australian apartments being flogged overseas. Often, marketers look to overseas buyers when locals perceive the product to be vastly overpriced. There was a string a while ago started by a guy who bought a Melbourne property off the plan at a seminar in London. It turned out to be a mistake. For this reason, I’d also be…[Read more]

They’re definitely around, Nick. I just sold one. Some of them don’t hit the open market – I sold through a buyers agent.

Tax Depreciation Schedules
Australia wide service
1300 660033
scott@depreciator.com.au
http://www.depreciator.com.au

I’m not a guru, but I know the town. Armidale would have the experienced the same price growth as most towns over the last couple of years. Not sure whether the prices will be sustained – I’d say they would have come off this year.

According to a local I know, some years ago Armidale decided that it didn’t really want to encourage industry. It…[Read more]

It is, PK. But the fact that I did it all myself means I hate the idea of selling it – makes acting with my head difficult when I consider my options with that house.

Tax Depreciation Schedules
Australia wide service
1300 660033
scott@depreciator.com.au
http://www.depreciator.com.au

Yep. But generally over a long period.

Essentially, what is relevant from the ATO’s perspective is whether the floor coverings are removeable without damage. If they are, they are regarded as an item of Plant – a Depreciable Asset. As such they have an Effective Life less than the building.

Tiles in the bathroom are regarded as part of the…[Read more]

Not sure about ‘scheme water’, but ‘brick veneer’ means you have one skin of brick for the outside walls and the inside walls are studs, either timber or steel, lined with plasterboard.
It’s a cheaper method of construction than ‘cavity brick’ (2 skins of brick with a cavity between). Most houses built these days would be brick veneer.

Tax…[Read more]

Hi Ian,
I doubt whether you’ll find such a site. To be honest, this forum would be your best resource. As you said this issue has been discussed a few times.
Admittedly, it is a bit of a grey area. Essentially, a ‘repair’ is something that restores an item to its original state i.e. fixing 3 bung elements on a stove or patching a hole in a fence.…[Read more]

Hi Jay,

Initial repairs are tricky. If a house needed painting, for example, when you bought it and you elected to do this prior to renting it out, you are essentially making ‘an improvement’. Strictly speaking, the cost would be added to the cost base of the property thus decreasing your capital gain when you sell. This may be what your friends…[Read more]

Thanks for the feedback.

He is currently employed and the new business kicks off in January. The PM spoke to his employer. And he has a copy of the tenant’s latest bank statement showing a balance in excess of $20K. And he owns property himself – he’s renting out his unit because he needed space.

The lease won’t mention employees, just a home…[Read more]

I’ve just been sent an unsolicited advertising proposal for a company that lists development sites – small, large, many with approved DAs. Not sure whether this is the sort of ‘land’ you mean.

I don’t know anything about them – http://www.foursite.net.au

Tax Depreciation Schedules
Australia wide service
1300…[Read more]

Bruham,
Plenty on parking in Annandale. It’s just near the shops and cafes that it gets crowded.

I’ve asked the property manager to mention on the lease that a ‘home based business’ will be run from the house.

Spoke to my Landlord Insurance provider and they said I’ll be fine. They suggested I make sure his business has insurance for visitors…[Read more]

Thanks for the feedback.

Parking won’t be a problem and I’d say the neighbours might like the idea of somebody being around during the day. We’ll see.

I’ll check the insurance policy and make sure he has insurance, too – I’ll get a certificate of currency. If I have to upgrade my insurance, I’ll get him to pay for the upgrade.

I don’t think…[Read more]

I’m with Greg – don’t do it.

I tried it once. Never again.

Tax Depreciation Schedules
Australia wide service
1300 660033
scott@depreciator.com.au
http://www.depreciator.com.au

One of the things the Reno Kings advocate for adding value is turning a 2 bedder into a 3 bedder by reconfiguring some of the spaces. Easier to do in Queensland where much of the housing stock is timber construction. Yep, I’m sure some of those additional bedrooms are on the small size.

Tax Depreciation Schedules
Australia wide service
1300…[Read more]

Screamin,
Apparently the average wage just crept over $50K. I know this because when I walked into the office this morning, Anna (who handles all our accountant affiliates) said: ‘Do you think I’m below average?’ I said: ‘No, of course not’. So she asked me whether she could have at least the average wage and shoved the Herald article in my…[Read more]

I reckon there are more people than we think who secured Loc Doc Lines of Credit against the equity in their PPOR and they’re gradually drawing down on this to meet living expenses. If they got the LOC last year, their property was probably worth more than it is now. Oh dear.

Tax Depreciation Schedules
Australia wide service
1300…[Read more]

Good idea to go and have an informal chat with the council. They’re pretty approachable at Marrickville.

Take along photos of the properties nearby that you mentioned so you can better explain what you want to do. Be aware that planning rules change over time. Remember there was a time when dual occupancy developments were very popular all over…[Read more]

Unlike Australia, depreciation is claimable on buildings of any age in NZ.

We’ve often toyed with the idea of expanding into NZ, but I’ve been unable to find people on the ground with the skills I need – especially in regional areas.

Not sure about Agile’s comment regarding depreciation not being claimable on positively gearded properties. That…[Read more]

Hi Waz,

No need to get a Tax Depreciation Schedule done at time of purchase, though if tenants weren’t in there it would have been easier.

Depreciation is just an outgoing, like rates, management fees etc. You claim it as an outgoing when you do your tax (Unless you opt to vary your tax).

If they’re older properties and in country areas (I’m…[Read more]

I’d say alot of accountants will ignore it.

The dilemma for an accountant is according to the ATO, they don’t have the qualifications to estimate construction costs, yet in many cases the depreciation available on those costs will be deductible whether it is claimed or not.

So if the original costs aren’t available, they will have to be…[Read more]