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Our property investment blog brings you all the best articles from industry investment property experts.

Depreciation schedules shed light on property investment

A recently released report by BMT Tax Depreciation analysed depreciation data and its relationship to investment trends in Australia. StartFragment According to their findings, the majority of investors who contacted the company to arrange a depreciation schedule during the 2015-2016 financial year (83.64%) ordered a report for one property. “This suggests many Australians are successfully taking their first steps in entering the property market, but the vast majority are buying one property,” said Chief Executive Officer Bradley Beer. The data further suggests that about 17.2% of investors are expanding their property portfolios to two or more properties. “In fact 11.35 per cent of schedule

Depreciation: an investor profile

An investor has purchased a property for $420,000 and is receiving $490 per week in rent for a total income of $25,480 per annum. The estimated expenses for the property include interest, rates and management fees, which total $32,000 per annum. The following scenario shows the investor’s cash flow with and without depreciation. A typical $420,000 unit will show a total deduction of $11,500 in the first full financial year. In this example the investor uses property depreciation to go from a negative cash flow scenario, paying out $79 per week, to a positive cash flow scenario, earning $3 per week on the property. By claiming depreciation this investor will save $4,255 for the year. To find

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