Thanks for listening to Mike on the Elephant in the room Podcast

Thanks for stopping by!

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 ELEPHANTINTHEROOM.

We were pleased to share some of our data findings with Veronica and Chris on the show. 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


Units
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)


Depreciation Deductions
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