A Finance blog by Paul Bennion.
Property investors in almost all Australian capital cities are now enjoying rental returns higher than the cost of borrowing money.
In its latest survey for the March 2013 quarter, Australian Property Monitors (APM) reported that in all capital cities except Melbourne, rental returns for apartments had risen to over 5% and even as high as 6.03% in Darwin.
With investors now able to secure interest rates at less than 5% per annum, purchasing an apartment as an investment property is more attractive than ever.
As a result, DEPPRO has recorded a surge in demand for tax depreciation reports in capital cities such as Brisbane, Canberra, Perth and Darwin when rental yields are highest.
The property depreciation specialist predicts that the demand for apartments will continue to rise with the expectation that interest rates will be cut further in coming months.
New and existing investors are encouraged to not overlook the importance of obtaining a tax depreciation report as soon as possible after settlement. Buying a new apartment can provide a taxpayer with considerable tax benefits provided through depreciation.
Investors should engage a professional depreciation specialist to prepare a full report of the property and maximise legitimate benefits.