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.”

Tax is an important part of the plan then? “Absolutely, property tax depreciation is like free money. If you buy new or near to new you get the most depreciation, which means your total personal tax bill is less. It’s just a gift – you get money back just for owning property.”

With Simon’s background, he chose one of the most experienced teams to prepare his tax depreciation report. “I’ve always used Napier & Blakeley – they’re really respected, not only by the industry but by the ATO. And they work on getting me the most tax back from my properties.”

You can even cut your weekly tax bill, according to Simon. “If you can estimate the taxable loss on your property, you can forecast that into your annual income and reduce your PAYG at your place of employment, so the money’s in your pocket each week instead of going to the tax office.”

Impressive. Simon also keeps a close eye on the holding costs of his properties, things like water and council rates, landlord insurance and strata fees. “Even though I have a property manager, and a very good one at that, I like to see all the expenses myself. I even save hard copies – it just makes it easier at tax time.”

“Property tax depreciation is like free money. If you buy new or near to new you get the most depreciation, which means your total personal tax bill is less. It’s just a gift – you get money back just for owning property.”

 Apart from keeping an eagle eye on outgoings, what other advice does Simon have for investors?

“Do your research, consult professionals and talk to family and friends who’ve done it. Don’t be an emotional buyer, investment is about facts and figures. Don’t buy and close your eyes, you may not have to take action but you need to be aware of what’s going on out there. Debt is good, by using someone else’s money you can really accelerate your wealth. And think outside the square – look at outer suburbs or regional towns – there may be good rental returns and growth there too.” Simon’s working towards a long term goal of passive income – making his money work so he doesn’t have to.

Meanwhile Simon’s happy with his day job, working with – you guessed it – property. “I like the fact that we create physical products that contribute to the built environment. And of course that people continually have new places to work and live.”

Call Napier & Blakeley on 1300 730 382 now to discuss your Property Tax Depreciation.

Kath Hemphill
National Residential Manager
M: 0409 722 709
E:  khemphill@napierblakeley.com

Featured in the First Property Buyer Magazine
April 2015