Tax Q&A: Your Questions on Depreciation Returns, Answered
Q: I am looking at buying my first investment property this year, and a friend has advised me to purchase a unit instead of a house for better depreciation benefits. I don’t quite understand how this works: houses are bigger, therefore shouldn’t the depreciation returns be higher? I would love some advice before I invest, as I’m aiming to keep my cash flow position as strong as possible (ideally I want a neutral or positively geared investment).
Thanks, Dale
A: Residential investment properties are usually classified into four main types of building: residential houses, townhouses, apartments or units (low-rise and/or high-rise). All these do allow you to obtain different types of capital allowance deductions.
If you are claiming under Division 40 on the above brand-new properties, you are generally entitled to claim the following percentages of the construction costs as a capital allowance:
a. Residential houses: 5–10%
b. Townhouses: 5–15%
c. Units/apartments, low-rise: 5–15%
d. Units/apartments, high-rise: 10–20% Continue reading
Following the formal opening of a Perth office by Graham Rigby two years ago, we are now pleased to welcome Andy Brunn to the WA team. Andy, who brings over 14 years of top tier international quantity surveying experience, moved to Perth from the United Arab Emirates 5 years ago.
During the last 5 years he has developed an excellent understanding of the local Perth market based upon his experience in a broad cross section of projects in the region.
Starting his career in the UK in 2003, Andy’s journey to date has seen him working on some of the most prestigious projects in the world whilst delivering exceptional results for his clients.
His experience crosses multiple sectors including corporate real estate, fund monitoring, commercial, retail, aviation, health, government/civil, education and hospitality, where he has been focused on delivering high quality pre and post contract services to developers, end users, financial institutions and contractors/sub-contractors on projects ranging from $500,000 to multiple $billions.
His specialties include cost planning/estimating, value management, financial reporting, payment claims, project management, claims and dispute resolution and procurement.
Andy’s results driven approach along with relationship development ensures that the best possible results are delivered to both client and project outcomes.
We continue to provide a variety of services including :