Investing in New Properties

Did you know owners of new investment properties are eligible to claim depreciation on the building structure and the fixtures and fittings in their property?

The effective life of a new building for ATO purposes is 40 years (some exceptions apply). This means a brand new property is able to claim the entire construction cost over the life of the property.

For example a property purchased for $450,000 and built in 2010 can claim $15,824 depreciation in the first year, $14,017 in year 2, $12,113 in year 3, $10,981 in year 4 and $10,342 in year 5 (based on the diminishing value of depreciation).

Source: BMT - Maverick Magazine, Issue 28

Gen Ys say YES to Units

Inner city high rise apartments are becoming the property purchase of choice for younger buyers. The trend, which is being spearheaded in Melbourne, is a result of buyers being priced out of the urban housing market but not wanting to move to the outer suburbs.

Sydney is another market that is highly likely to see growth in the apartment market, as a result of off-the-plan stamp duty concessions introduced at the beginning of July.

Source: Your Investment Property Magazine