How Can I Use Homebuilder Grant for Renovating My Investment Property? Find Here

Ever since the announcement of HomeBuilder grant worth $25,000, property investors are curious to discover every vital detail about it. Property investors are keen to know if they can utilize the grant for renovating or extending their investment property. Tax return Australia covers the financial year from 1 July to 30 June and become due by 31st October every year. Property investors desire to find out if they renovate their bath area or kitchen, what kind of tax depreciation deductions will be claimable. It is worth noting that property investors will not remain eligible for HomeBuilder grant in case they purchase a brand new house. Additionally, trusts and organizations that own residential property will also not remain eligible for HomeBuilder grant.

Here are some vital details about HomeBuilder grant:

What is HomeBuilder Grant?

As of now, the Australian Government has decided to help the residential construction industry. In its bid to assist the industry, the country’s government announced the creation of HomeBuilder grant worth $25,000 for first home buyers and owner-occupiers. According to, if you shift to the property as your main place of residence soon after renovation and meet all the eligibility criteria, you will get the grant. You may seek the help of professionals to calculate the yield on investment property.

How to Access HomeBuilder Grant?

If you want to access HomeBuilder grant, you must fulfill some conditions. You must be a natural person (no commercial goals) and aged 18 years and above. You should be an Australian citizen. You should belong to one of the two income caps given below:

  • $1,25,000/annum for the individual applicant based on their 2018-19 taxable income, or
  • $2,00,000/annum for a couple based on combined 2018/19 taxable income.

You must enter into a contract from June 4, 2020, up till December 31, 2020, to construct a new home as the main residence place. Here the property value of the house and land must not exceed $750,000.

If you renovate an existing house as the main residence place where renovation contract is more than $150,000 and does not go beyond $750,000. Additionally, the value of the existing property must not exceed $1.5 million. And, finally, you should be able to prepare your property report effectively to reduce your tax liability.

Can You Use Homebuilder Grant to Construct a Granny Flat?

The HomeBuilder grant will not be allowed to use for making any additions to your main residence place. The grant will not be used for structures like granny flats, garages, sheds, swimming pools, etc.


You should apply for HomeBuilder grant by December 31, 2020, to the concerned Revenue office. You must hire a professional to prepare your tax depreciation schedules and reduce tax liabilities. Property investors will not be permitted to use HomeBuilder grant for a future investment property renovation. However, you will still be able to claim significant tax depreciation deductions from your renovation. You are eligible to claim tax depreciation for former owners’ renovation. Meanwhile, if you rent a room at your main place of residence, you can utilize HomeBuilder grant for your renovation.

Tax Deductions – Tips for Individual Real Estate Investors

Planning to invest in the real estate sector? Looking for tips that can help you in tax deductions? Mentioned below are a few tips for Individual Real Estate Investors:

Property Taxes and Insurance:

Any expenses incurred on rentals of Property taxes and insurance are termed as deductions. In the event that you purchased your rental with traditional financing, you are most likely making property regulatory expenses and protection costs on a month to month premise into an escrow account. It’s imperative to acknowledge that the installments into escrow accounts are not really deductible. Rather, you can just deduct property assessments and protection when paid out of escrow. Have a look at the federal tax depreciation schedule for some more tax deduction tips.

Property Depreciation and Tax Deduction:

Devaluation is a yearly conclusion that is conceded to venture land proprietors or proprietors of equipment utilized for business purposes. You may be confused as to why your property deteriorates when in reality the land value increases. While the facts demonstrate that the estimation of the land and the building has verifiably appreciated over time but, you got to think from a micro level as well.

The estimation of your rooftop, for example, diminishes after some time as it decays each passing day. Deterioration tracks the value loss every year. The interesting thing about devaluation is that you don’t need to pay out-of-stash for it every year. Rather, you pay for everything forthright when you purchase the property. Thus, it helps in tax deductions.


Firstly, you will get the full Property depreciation and tax deduction (reserve funds) from the findings in the present year.

Secondly, since the cost is a repair, the cost isn’t a change and deteriorates over various years.

You can save on tax deductions on amortizations, maintenance, education, meals, travel, and home office.

The amazing tax benefits from rental properties you probably forgot about

Thinking about tax is much more fun when you’re thinking about tax benefits. Property investment is a tricky game to play, but smart investors reap the rewards when they remember to claim on the below items.


Tax depreciation

The tested-and-true method, and Deppro’s speciality. Getting a tax depreciation schedule ASAP is a guaranteed way of earning back the money from your portfolio. It’s one of few tax benefits that doesn’t discriminate.

It’s best for the quantity surveyor to do their inspection before the tenants move in. When the investor does renovations, they’re obliged under ATO law to tell the surveyor how much was spent. Measures like this make sure that the maximum benefits are awarded.

The depreciation fee is a tax benefit; it’s fully deductible!

Capital gains tax

Yes, there are some benefits to capital gains tax, particularly thanks to the exemptions available!

It’s not available to your entire property portfolio, typically the exemptions apply to the home you actually live in. You can get a full exemption if you live in the home for at least 6 months after buying and can prove it’s your primary residence.

Another full exemption is possible if you own the home but have to move thanks to special circumstances. You can lease out the house during this time for a maximum of six years before you have to pay some CGT.


Claim against the mortgage

You probably think that ‘mortgage’ and ‘tax exemption’ don’t go together in the same sentence but it’s possible! But tax benefits like this come with conditions.

Investors with interest-only loans can claim against it come tax time. Interest is the money you’re making on the house/commercial space. 


General upkeep fees

It’s the owner’s responsibility to make the property presentable. Because these services are of benefit to the rental property they’re possible to claim. Examples of maintenance fees include cleaning, fixture repairs, pest control, gardening, and more.


Management costs

You have to spend money to make money as the saying goes. Real estate advertising and fees paid to the property manager can be claimed as tax benefits alongside other management costs. Some of these are overlooked and owners potentially miss out on thousands.

  • Body corporate
  • Council fees
  • Land tax
  • Legal fees

Cleaers, real estate services, property management services…all eligible for tax benefits


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3 underestimated real estate tools you need to up your game

Real estate is a game that’s brutal if you don’t know how to play it. Some investors are naturals, others learn from their mistakes and go on to build a successful portfolio. There’s plenty of different strategies and tools out there at your disposal. Here we list three that you’re maybe not taking advantage of, but very well should be.


  • Depreciation schedule

It’s said up to 80% of investors don’t know they can increase their income through depreciation. This is hundreds of thousands of dollars that’s not in your bank account, rather, it’s going to the government through tax.

Deppro’s depreciation specialists will survey the real estate you’ve bought and get back to you with a schedule that’s got a 40-year lifespan. You probably won’t have the property for that long, but it’s long enough for you to start seeing return on your investment. Our tax depreciation services are helpful to investors in residential and commercial property. If you’re a business owner, this means you can expand, or find a larger office space, sooner!


  • Property manager

These guys handle the daily tasks surrounding your properties so you don’t have to. Lots of investors also take on the role of ‘landlord’, but this doesn’t always work out well. Think of the problems that come with difficult tenants and knowing how best to set the rent.

Property managers don’t have to worry about ‘emotional investment’ like the owners of the properties do. They take a critical approach to screening tenants, how to set the rent (and adjust it), handling leases, and evicting troublemakers. You’ll find managers specialising in many areas of real estate, from commercial offices to apartments and homes.


  • Investment companies

These companies are made by investors for investors. They offer support services like educational seminars and specialised searches for real estate and property managers.

Property Club is an example of an investment company that encourages support, rather than competition. Of course, real estate is a competitive game but investment companies will have your back through your journey. Property Club has exciting events like property tours, access to expos, and other events like research and education seminars. There’s a further subset of clubs that members can join when they meet certain criteria.

These three tools are often overlooked but extremely beneficial. They save investors time, money, and emotional burnout. They’ll certainly make your investment game a lot stronger.

Rental property depreciation mistakes to avoid

Rental property depreciation is a bit of a mouthful but it’s an essential part of owning an investment property. Everyone makes mistakes when it comes to complicated tax matters, and that’s the reason why clients come to Deppro for professional help. We list a few common mistakes (plus more here) so you can avoid them.


  • People don’t depreciate. Ever.

80% of property investors neglect having their rental property assessed for depreciation. This mistake costs them thousands of dollars over the time they own the house, with the money they could earn going back into tax instead.

Deppro calculates that getting a depreciation report can earn investors back  60% of the property’s purchase price. These funds are often used to save for future properties.


  • Confusing the categories

The deprecation specialists place items of value into two categories: plant and equipment, and capital works.

Plant and equipment: The owners often move these into the house when they buy it, and they can be removed just as easily. Items in this category include:

  • Hot water systems
  • Air-con units
  • Furniture
  • Whitegoods
  • Curtains

The other category is capital works. These items are built into the house. They include:

  • Cupboards
  • Clotheslines
  • Fences
  • Timber (decking)
  • Bathroom fixtures

There’s more information from the ATO about assets eligible for depreciation in this PDF.


  • People overlook potential deductions

Investors make this mistake a lot because they don’t know what they can claim. This all adds up to a larger depreciation on the report the new owner receives. Claimable items include something as large as a swimming pool to something as innocuous as a smoke alarm. These potential deductions leave investors out of pocket when they’re not claimed.

If you’re an investor and don’t have a depreciation schedule, you’re missing out on thousands of dollars in returns every year. Those who do have a schedule are liable to make mistakes, like confusing what item goes into which category. To avoid mistakes like this, get an expert like Deppro on your side to take the guesswork out of rental property depreciation.