Tax Benefits Available to Property Investors

There are several tax benefits available to Property Investors.

Depreciation of the building can be claimed as a tax deduction and often provides some excellent benefits, particularly when buying off the plan or newly constructed property/s. Off The Plan properties that have common areas and equipment like lifts offer much higher depreciation than a stand-alone unit or home.

Using a Quantity Surveyor to prepare a Tax Depreciation Schedule for your Accountant is highly recommended. A quality Quantity Surveyor is able to squeeze some great deductions out of your investment property that are often overlooked. The benefit of this is that with greater deductions coupled with the rental income it will reduce the amount you need to put towards your investment property and in some cases it will actually put money back into your pocket (cash flow positive). 

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You can further increase your leverage by borrowing at a higher LVR (Loan to Valuation Ratio). This requires less of your own cash to purchase your investment property and allows you to claim a greater tax deduction on the interest charged on the loan.

Travelling to your investment property to check on the property condition or to collect rent are expenses that will be tax deductible. If you pay a property manager (highly recommended) to manage your investment property this expense will also be a tax deduction.

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