Raine & Horne Bundaberg Blog

June 30 is around the corner, it marks the end of the financial year. If you are looking at using property for its investment tax benefits, now is the time to act.

By investing before June 30, you can bring forward a host of investment property tax benefits and achieve a short-term cash flow boost to help out with the up-front costs.

Some quick tips for receiving the tax benefits of investment property are:

•Know your deductions and claim immediately on a host of property management costs potentially worth thousands of dollars of tax deductible expenses and investment property tax benefits.

•Pre-pay interest on your investment loan to bring forward deductions that you would otherwise have to wait for until next year.

•For the ultimate in property investment tax benefits and efficient property investing at tax time, focus on new properties (either house and land, or a completed spec / display homes) which receive property investment tax benefits such as full depreciation allowance on buildings and fixtures and fittings costs.

“A report commissioned by PrimeSpace Property Investment released in 2012 found residential property was a low risk, high return investment. Over 20 years it did about two and a half times better than international equities and had 64 per cent less volatility of returns,”

Remember when selecting your investment property, you need to think about the end user, the tenant.

Tenants like convenience and the better investment choices tend to be those which are easy to maintain, have access to arterial roads and public transport and are located close to shops, schools, tertiary institutions and other community infrastructure.

Unlike shares, you have more control over the value of an investment property. You can improve property and thereby improve its value.  Unless you run the company you have invested shares in you have very little control over the value of shares.

Property investment is not difficult if you do your research, give me a call or send me an email, we can discuss any current great opportunities, but always remember to discuss any plans you have with your bank, mortgage broker and/or financial planner before you sign any contract.

Joshua Rub

Principal