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Value Made Visible Venturing to purchase a dwelling, either as an investment or principal residence, is a bag of mixed emotions.
ONE OF THE GREAT BENEFITS OF OWNING AN INVESTMENT PROPERTY ARE THE TAX BREAKS; HOWEVER, MANY OVERLOOK CLAIMING THE DEPRECIATION.
T
he ATO allows for the costs of construction and fit out of investment properties to be claimed back over time, against the income earned on the property. An Opteon tax depreciation schedule details the eligible amounts that can be claimed in the tax return over a 40 year period.
• Division 40 - Fittings/Plant Items: Fittings/ Plant Items - carpet, heaters, air conditioners, ceiling fans, cooking appliances, hot water system, smoke alarm and window furnishings etc. RELEVANT DATES: DIVISION 40 (FITTINGS/ PLANT ITEMS)
Excitement overwhelms, knowing this property could be yours in the very near future. However, this excitement can suddenly turn into apprehension: is the asking price too much, what is the true market value, how much are you willing to pay, and what will the bank lend?
research is undertaken. Then the comprehensive pre-purchase valuation report is prepared, highlighting the key property features, and providing an objective opinion of the market value. This pre-purchase report provides the upper and lower market parametres, which helps a purchaser be more informed when making offers, and negation.
A pre-purchase property valuation report can assist you to determine the true market value of your next big ticket item. It can also be further endorsed as a financial mortgage report, utilised by your lending institution in some instances.
The New England residential property market is constantly evolving, and having an experienced property valuer, who is a Tablelands resident, with vast market knowledge can help make your property purchase journey prosperous.
As part of the valuation process, the subject property will be fully inspected, including measuring improvements, taking photos and notes, and thorough market and property
By spending a small amount on a pre-purchase valuation report, you could possibly save tens of thousands on what is (for most people) the biggest financial transaction in your life.
RESIDENTIAL: Fittings/Plant Items - carpet, heaters, air conditioners, ceiling fans, cooking WHO CAN MAKE A CLAIM? All appliances, hot water system, smoke owners of income producing alarm and window furnishings property should investigate etc. IN VE ST M EN T whether their property TS SE AS COMMERCIAL: High bay PROP ERTY qualifies. If the building DE NT IA L, IN CLUD E RE SI lighting, motorised doors, , improvements don’t CO M M ERCI AL fire services, demountable D IN DU ST RI AL AN give rise to a claim, a / SS NE SI partitions, heating/cooling, BU AG RI claim for the fittings/ ERCI AL RU RA L. CO M M alarm system, carpets etc. D plant items may be LA ND LO RD S AN IG IB LE EL RURAL: Vary depending on TE NA NT S AR E M .” possible. Investment AI TO M AK E A CL property type and property property assets include use. Increased rates for primary residential, commercial, producers. industrial and agribusiness/ NO COMMENCEMENT DATE: Subject rural. Commercial landlords and to the effective life of the item, can be reset tenants are eligible to make a claim. at time of purchase. WHAT IS THE Opteon PROCESS?
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A registered property valuer completes a comprehensive internal and external on-site audit of the property or plant and equipment. The depreciation team then review the wide range of potential deductions; these may include original building works and structural improvements, renovation works, plant items and eligible common area. All reports are reviewed and approved by an in-house specialist Quantity Surveyor. WHAT IS ASSESSED? Income Tax Assessment Act 1997 Provides Two Allowances: • Division 43 - Buildings: dwelling, garage, carport, sheds, renovations, and Other Fixed Structures: paving, driveway, fencing, retaining walls, pools, pergolas and clothesline.
PROPERTY AGE DETERMINES ALLOWANCE: Tax Act sets out relevant dates from when a claim can be made, depending on the allowance: Division 43 (Building) relates to construction date or date of refurbishment, Division 40 (Fittings/Plant Items) depends on the time from date of sale or refurbishment. Renovation works are also taken into consideration when establishing a claim. CAN CLAIMS BE BACK DATED? A claim can be back dated up to two years without a variation to a tax return. Claims can be made for periods longer than this with a variation to a previous tax return. This financial year, don’t overlook conducting a depreciation schedule on your property. Please phone our office to find out more. new england focus. 49