How to maximise the cash from your investment !

Property Ownership 

Why is it that when talking about investments, the discussion is based on a net before tax return, and the issue of after tax return is never given proper consideration? In this article using some basic rules of tax depreciation, we will show a simple example of how deductions, when properly calculated, can improve the net after tax cash return of a property investment.

What if this information is not available from the vendor? 

Tax ruling 97/25 basically provides the avenue for the owner to have an assessment done by a suitable qualifed professional quantity surveyor such as Napier & Blakeley.

Example – see Table 1

The simple example below shows how a properly prepared property tax allowance assessment can provide icing on the property investor’s cake. We used a $5m office building with 1800m² net lettable space, rented at $250m² to give a total of $450,000 annual income. We also know that it was built in 1995 and includes a land component of $500,000. Continue reading →