Posts by Mike Mortlock
The recent regulatory changes and the state of the Property Market
The January CoreLogic figures have shown that capital city dwelling values have posted their first quarterly fall since April 2016. The peak of the market was called as far back as 2016, but now we’re seeing the evidence some two years later. On a positive note, the combined regionals edged slightly higher over the Dec-17…
Read MoreHow common property assets can supercharge your upfront deductions
Most investors would be aware that if you own a unit within a complex, you’ll have an entitlement to claim over the common property assets based on your share of ownership. This percentage share is commonly referred to as a unit entitlement and can be found on your strata plan or plan of subdivision. You’ll…
Read MoreWhat is a tax depreciation schedule and how can it change your tax return?
Albert Einstein said if you can’t explain something simply, then you don’t understand it well enough. So, it’s time to test my understanding of tax depreciation schedules! A tax depreciation schedule is simply a report detailing the depreciation entitlements available to you within your investment property. The depreciation entitlements can be broken into two simple…
Read MoreOur predictions – Property Market Scorecard for 2017 and 2018
What a year property has had in 2017. We’ve seen some double-digit growth in major capital city markets and a big move from APRA in the investor lending space. We’ve also written extensively about changes to depreciation. There’s also been plenty of debate about foreign investors and housing affordability. So, what did the numbers show…
Read MoreInvestors are losing to depreciation changes to plant and equipment
We recently analysed 1,000 residential depreciation schedules and found that 82% of them would still benefit from having a depreciation schedule completed, given the impact of depreciation changes to plant and equipment. In some ways, it’s good news for investors (and quantity surveyors especially) that the impact wasn’t worse. Certainly, abolishing negative gearing would be…
Read MoreCritical misinformation around property depreciation changes
The senate has passed the depreciation changes (as of writing it is awaiting royal assent), but unfortunately a number of large quantity surveying firms have been reporting incorrect or incomplete analysis of the changes. I’ve been modelling the impacts of the recent depreciation changes by analysing the reports in our system as well as looking…
Read MoreWhat you need to know – Investment Property Budget Changes
Investment property tax deductions hit the headlines when the 2017-18 Federal Budget was handed down on 9 May 2017. As the second biggest tax deduction after interest, depreciation deductions against investment properties save investors thousands of dollars and can make or break the profitability of a property investment What deductions can you claim against…
Read MoreWhy buying brand new is now the key to maximising your tax deductions
People often ask me questions like “I should buy a new investment property because it’s better for tax right?” The answer is yes and at the same time, no. Buying a brand-new property because of the available deductions is not a sophisticated strategy. Accountants tell me the same thing, people say they need an investment…
Read More5 things to consider when buying an off the plan investment property
Buying an investment property ‘off the plan’ has many benefits. Government incentives, tax depreciation, long settlement terms and the satisfaction of owning a brand-new property makes buying into a new development attractive to many property investors. Here are five things you should consider if you’re looking at an off-the-plan investment property: Do your…
Read MoreMaximise depreciation deductions when buying your own commercial space
Are you considering purchasing your own commercial space? If so, capturing and claiming depreciation deductions should be high on your ‘to do’ list. Commercial investment property owners can save thousands of dollars each year by claiming depreciation deductions for the wear and tear of building structures and fittings. Depreciation deductions often mean the difference between…
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