ADVICE ON BUILDING

Hey Johann

The best tax advantages as I see them are:
 
The depreciation (plant and equipment) and capital allowance (building) are the highest that they will be so non cash deductions are at their maximum.  It is also worth noting that you get 6 months depreciation in the first year's tax return regardless of when it is completed.  This may be well for you if you purchase at the end of the year and can have the house built and ready for rent before the end of the financial year.  You can effectivley get 6 months tax deduction even if it is only rented for one week. (it is also worth noting that if it becomes ready for rent on the seond week of July (just into the new financial year) that you also only get 6 months depreciation even though you have rented it for almost a full year.  (Pays to have it completed just before the end of the financial year).

Another advantage is that if you buy land and have a house built within 12 months then all the interest is tax deductable.

Other advantages (not of a tax nature are) newer houses generally attract a higher rent, If you buy well and build well then you should receive an equity gain at the end, and finally if you can do some of the work your self, tile, paint, landscape, fence turf than that will increase your starting equity even more.  Really helps when you want to get into another deal ASAP.

Good luck and let us know how you go

Don