A General blog by Paul Bennion.
With the average home loan in most major capital cities in Australia now around $300,000, investors should ensure they claim all their tax entitlements to achieve their best possible cash flow.
According to the Australian Bureau of Statistics Housing Financing Commitments Report of November 2011, New South Wales has the largest average home loan in Australia at $324,000. Victoria is not far behind with an average Savehome loan of $299,100.
Paul Bennion, Managing Director of DEPPRO, Australia’s leading tax depreciation company, urges investors to not overlook the benefits of property depreciation.
“With major banks increasing interest rates above the policy settings of the Reserve Bank of Australia, it is now even more critical that investors maximise their cash flow by claiming full tax depreciation benefits,” Bennion said.
“These higher interest rates will make it harder for investors to service their loans, especially in capital cities such as Sydney, where the median price for a home is $656,000.”
Property investors who boost their cash flow by claiming eligible tax entitlements through property depreciation will be well placed to take advantage of the rebound in the property market, which will be driven by an undersupply of homes in Australia, Bennion added.
“A tax depreciation schedule can deliver cash flow benefits of several thousands each year for each investment property,” Bennion said.
“However, the Australian Taxation Office, has very clear guidelines and procedures that must be followed in order to achieve maximum legal tax deductions across investment property ownership. To ensure your report fully complies only use the services of an authorised company, such as DEPPRO.”