A General blog by Paul Bennion.
Australia’s lending market is gearing up for its busiest month with the year’s peak property investment lending period just weeks away.
According to Paul Bennion, Managing Director of tax depreciation specialist, DEPPRO, a review of ABS lending data for the last three years found that June is the peak month of the year for property investors.
“Home loan lending data shows that in June 2011 investors borrowed $6.4 billion – this is 52% higher than January 2011 when investors borrowed $4.22 billion,” Bennion said.
Similar levels of borrowing also occurred in June 2010, when investors borrowed $7.3 billion and in June 2009, when borrowings for investors reached $6.9 billion.
Bennion said that the start and the end of the financial year typically bring a flurry of activity in the property market.
“June is a peak borrowing time. Many savvy investors aim to secure an investment property at this time in order to maximise their tax benefits.
“For those who buy an investment property, it’s important that they undertake an ATO-compliant tax depreciation schedule as soon as possible after settlement in order to legitimately claim their full tax benefits and depreciation allowances.”
Not surprisingly, June and July are the busiest months of the year for DEPPRO. To assist clients by delivering a prompt service, DEPPRO has an online ordering system at www.deppro.com.au.
“To receive a quote for the cost of a tax depreciation report, clients only have to enter the postcode of their property into our online system. To order a report, simply follow the prompts and a DEPPRO member of staff will be in touch,” Bennion said.
“For the initial cost of a tax depreciation report – which is tax deductible – clients can earn thousands of dollars in tax benefits each year by legitimately claiming full depreciation allowances for their investment property. Even an older style property can qualify for substantial tax benefits if a depreciation report is undertaken around the time of settlement.”
