Property Prodigy
At just 22, Simon Hicks bought his first investment property, and his portfolio has grown steadily ever since. Louise Hegarty talks to a young man with a big net worth and an even bigger plan.
“It was an opportunity that just really needed to be jumped on,” says Simon of his first investment property. “It was back in 2009 when the first home buyer’s grants were all in place, and a good property at a good price came up.” Buying off the plan meant Simon received the maximum grants, and maximum tax depreciation benefits for years to come. “There’s all this money if you know where to look,” he says, with a quiet wisdom well beyond his years.
No stranger to the market, Simon works in the property development industry and comes from a family of investors. “My father taught me a lot, he used to explain what he was doing with his portfolio, and I guess I’ve always been interested.” Simon also has the benefit of a degree in Property and Construction from the University of Melbourne, some of which was attained in Sweden. “I’m a bit of a nerd sometimes, I have a definite interest and even check out the ATO website.” Continue reading
Tenants Leftovers – Landlords Bonus!
If vacating tenants have left fixtures and fittings in your investment property, some of them may be eligible for depreciation claims. KY Pih from Napier & Blakeley’s Brisbane office explains the principles.
Property tax depreciation has two parts:
(1) Division 40 items are plant and equipment like carpets, vinyl, lights, air conditioners, curtains, fire equipment, and hot water units; and
(2) Division 43 items are generally considered the ‘shell’ of the building and include things like walls, floors, ceilings, pipework, ductwork, etc.
If a tenant vacates and leaves Division 40 items behind, unfortunately the landlord is not entitled to claim depreciation on them because they did not incur the original expenditure. However, the landlord can continue to use the fitout to generate further income. Continue reading
