MCG Quantity Surveyors and Domain & Co.
Domain & Co. working with MCG
As promised, we're pleased to be able to offer a free review on the potential depreciation deductions for a property that you own already, or are looking at purchasing. If you have a property you'd like to have a depreciation schedule prepared on, you're entitled to a $100 discount on the standard fee. Please contact us via our request a quote button and mention the code 'DOMAIN&CO'.
We were pleased to share some of our data findings that were mentioned with Melanie Dennis. Here's that data and more for your information below;
From our analysis of 1,000 of our residential reports:
Type of residential investment
1 43.1% of investors buy/build a house
2 8.5% townhouse or duplex
3 47.3% a unit
4 38.2% of all investors buy brand new
1 68 is the ave. number of units in the development for investors that purchase a unit
2 Ave purchase price is $539,570
3 43% are bought new (204/473) compared to 26.2% for new houses (drops to 7.3% if we exclude properties where the client engages the builder directly)
1 Ave first year deductions $9,415
2 over first 5 years it's $38,388
3 ave total deductions over 40 years $192,159
Let's get real
With Ave deductions of $9,415 here's what you'd get back in your pocket (source: ATO Calculator)
On an income of 200k you'll get $4,237 back in your pocket
150k is $3,484 in your pocket
100k is the same
50k is $3,060 in your pocket
Budget Changes (9/5/2017)
38.2 % of schedules are on brand new properties*
69.9% of the properties were built after div43 cut-off date 16/9/1987
Of all pre 87 properties, 63.8% have been renovated to an ave value of $39,191
83.9% of investors would still have been recommended a schedule from our modelling
Div 40 vs Div 43
Post budget we analysed 100 schedules, ave value of 1st year deductions was $11,628
the div 40 component was $6,870, div 43 is $4,758
investors lose 59% of first year deductions from the budget changes
DID YOU KNOW AUSSIE INVESTORS ARE MISSING $2.9 BILLION IN DEDUCTIONS
Yep! You heard right, new analysis by MCG Quantity Surveyors has revealed Australian property investors are missing out on claiming billions in deductions by failing to take make one simple decision.
MCG’s figures revealed the average number of lost years of deductions for investors who missed out because they didn’t have a schedule was 3.58 years. In that time, the average investor without a schedule had potentially forgone around $20,537 in depreciable benefits. “We even had one investor who waited almost 18 years to do a schedule and lost $41,000 in tax breaks as a result.” The MCG analysis showed 6.7 per cent of all investors had lost deductions in this manner, which equated to a total loss of $1,375,963 per 1000 investors.
When these results are applied across the nation’s total investor population, it shows 140,525 Aussies are missing out on billions of dollars in deductions. A lack of awareness about the benefits of depreciation had a huge part to play in the outcome, and tax can be a complex subject for most people, and some property investors remain under-informed about the benefits depreciation can bring at the end of the financial year.
WAIT! THERE'S MORE!
Tax Tips from Mike Mortlock
Additionally to the video with Melanie and Mike, you can pick up some extra juicy tips here.
Mike shares his top tips for property investors to help ensure you maximise your return this year.
Talk to one of our tax depreciation experts today
on 1300 795 170 to ensure you have a professional
maximising your tax depreciation deductions.