Just think of depreciation as an outgoing, like interest, rates, management fees etc. Yes, commercial is pretty similar to residential. When it comes to CGT, only residential benefits from the 50% discount. In regards CGT, when an asset is sold, depreciation claimed on the building only i.e. not the depreciable assets, is subtracted from the cost…[Read more]

O only ever communicate with my tenants through my property managers. And not every tenant is rewarded. As I said, it’s the ones who go out of their way.

Depreciation benefits on pre 85 built properties are being progressively squeezed. A number of items have been removed from the Depreciable Assets register NB this register is a little bit arbitrary and it’s prudent to monitor Interpretative Decisions and Rulings to determine where the ATO stands at any given time. We no longer include television…[Read more]

It’s never happened to me. Maybe I’ve been lucky. Then again, I’ve done it for a number of years with a fair few tenants. I reward tenants who are prompt with their rent and go out of their way to take care of (and in some cases improve) my properties. So they make the first gesture, and I acknowledge it. My tenant retention rate is excellent.

I think this is a good thread. Once I get a tenant, I do everything I can to keep them. Of course, this probably flies in the face of hard line investor wisdom – see Yack. I have a tenant in a block of flats I own who is a keen gardner. I give the local nursey $40 per month and they keep a tab for her. The gardens look great – lots of flowers…[Read more]

Don’t forget depreciation as an outgoing when you’re doing your calculations, Nathan. I agree also that when you start to get investment properties it’s time to look for an accountant who understands property.

I didn’t say avoid country areas. You put it more succintly than I did, Yacka, when you said investors need to look at an asset’s fundamental value. To take your point Rubbachook, alot of research is done by prudent investors on rental vacancies, town demographics, employment etc. I just think consideration of replacement value of the property +…[Read more]

Just thought I’d wade into this one. I’ve long been a reader but rarely a participant of this forum. We’re getting an increasing number of calls about Tax Depreciation Schedules from investors buying in small country towns, as well as some larger ones: Kalgoorlie, Broken Hill and Mt Isa to name a few. Cash Flow Positive is a mantra that’s leading…[Read more]

Vendor schedules are generally wrong. Always get them checked out by a depreciation specialist before you use them.

The chaepest price isn’t necessarily the best. The key is finding someone who specialises in depreciation because they will know the rules – and as you know the rules are changing. Remember, if you commission a Tax Depreciation Schedule, pay for it, use it to calculate your tax, the responsibility for its accuracy lies with you i.e. if the ATO…[Read more]

The mooted 15% drop in depreciation won’t affect many properties. Hardest hit will be recently built apartments. Interestingly, with houses, especially older ones, depreciation claims will rise. I have a company that specialises in property depreciation – it’s all we do. I’d mention the name of the company but I’d say that would contravene the…[Read more]