Property & You – By Paul McKenzie, ABS Conveyancing
Property is the biggest investment class for Australians, especially with tax benefits, such as negative gearing and tax depreciations allowances. Buying property as an investment is different, as you ‘buying through the mind’, instead of the heart, as you would if buying as an owner occupier. Suitable buys especially in residential, would be suburbs with rising prices and rents. Together with good public transport, shopping centres, cafes, closer to the city and TAFEs/Universities. New or recent built residentials would be more suitable, for tax depreciation allowances benefits. New or recent built residential apartments in good profile suburbs, with good public transport, also has the tax depreciation allowances benefits, with common property, such as lifts, pools, gyms etc.
The smart investors seem to hold only for a few years, tax depreciation benefits diminish to the usually capital allow of 2.5% up to 40 years, then sell and buy a new or recent build property, to maximum the tax depreciation benefits.
