MAY 2023 NEWSLETTER
A WORD FROM OUR DIRECTOR
May has again been a really good month for our business and property in general throughout the Bendigo region. We have found really strong interest in updated and newer homes along with units and modern townhouses. There is still a slight glut in sub $500,000 price bracket with homes requiring work or renovation. Although we expect another one or two small rate hikes, we have found optimism in the market quite good. We all feel that this will lead into a pretty good Spring for both sales and property management. A huge congratulations to our Property Management team who achieved their biggest month ever, the team have leased plenty of homes, much of it new business which we are really grateful for. Recently the State Government released updates to a temporary land tax surcharge which will affect most investment property owners for the next ten years. If you are interested in the detail please click HERE. What does this mean for property in Bendigo? We believe that real estate will remain pretty stable locally, investment may slow up a little, however over twelve months I think we will find a further shortage in available rental properties which will retain Bendigo’s strong rental yields. We would personally like to see some relief for renters with more housing availability, but it seems that might be a year or two off. On a lighter note PH Property were nominated for the Bendigo Business Awards again this year in the categories of Professional Service Firm Award and Female Director Award. We thank you for the nomination and a big shout-out congratulations to Catherine Beecroft on her nomination. We don’t believe we will have the time to go through with the rigorous nomination process this year, but we will give it our best in 2024 if we are there again!
A BLOG FROM OUR RENTAL MANAGER/DIRECTOR
DEPRECIATION ON INVESTMENT PROPERTIES
As an asset with significant value, your investment property is subject to a range of changes each year that depreciate its value. The better you understand these changes, the smarter you can be about claiming back some of your investment property’s depreciation in your annual tax returns. And as a result of legally maximising depreciation on your investment property, you can increase your return and lower your expenses. Keep reading to learn about depreciation on investment properties.
What is investment property depreciation?
Put simply, investment property depreciation is a tax deduction that accounts for the decline in the value of your investment property in your net tax return. There are two key areas where tax deductions can be claimed for deprecation:
· Building structure: the decline in value of the physical building and permanent fixtures.
· Plant and equipment assets: the decline in value of impermanent fixtures, such as ovens, dishwashers, air conditioning units, curtains, and carpets.
How do you claim depreciation on an investment property?
To maximise your tax deductions for depreciation, you should work with a quantity surveyor. They can prepare a tax depreciation schedule detailing all of your property’s depreciable assets and how much these will decline by each year. While there is an initial cost in preparing a tax depreciation schedule, the ability to maximise your deductions and lower your tax bill over the time you hold the property will likely more than cover this cost.
What can you claim as an investment property depreciation deduction?
The items and expenses that can be claimed fall into three general categories: new assets, substantial renovations, and second-hand depreciating assets. New assets are new fixtures that you may add to your investment property, such as air conditioning units, dishwashers, and carpets. Substantial renovations include the replacement of foundational and external walls, floors, roofing or staircases. Finally, for properties that settled before 10 May 2017, second-hand depreciating assets, such as kitchen appliances and lighting fixtures, can also be claimed. For assets that cost more than $300, the cost of the asset must be depreciated over time. And for assets that cost less than $300, an immediate, full deduction can be claimed. Depreciation can have a significant impact on your net tax return. Ideally, you should set up a depreciation schedule as soon as your investment property settles. But if you haven’t, it can be backdated by up to two years. Once you have your depreciation schedule in place, make sure you keep it updated to take new fixtures and renovations into account. Remaining diligent with depreciation adds up over time, both increasing your total return and reducing your expenses. If you haven't already set up a depreciation schedule, make sure you speak with your accountant and a quantity surveyor as soon as possible.
CAREERS NIGHT
We were thrilled to have four of our team members share the fascinating world of real estate at the 2023 Careers Night at Catherine McAuley College. An amazing turnout and hopefully a few promising individuals from the night will play a pivotal role in the continued success of the Bendigo Market in the years to come!
CONGRATS SAMANTHA
Congratulations to our amazing sales representative Samantha for recently becoming engaged! We're thrilled for you and your fiancé Chris and wish you the best in this next chapter of your lives
MOTHERS DAY
A special shout out to the mums of PH Property (and mums to be), we appreciate everything you do for our team!
WELCOME NATASHA
Natasha moved to the small Country town of Dunolly in 2021 from the hustle and bustle life of Melbourne. In her spare time she enjoys spending time at the local Football & Netball Club volunteering and watching her children play. Natasha also enjoys mountain bike riding and working out in her home gym. At home, Natasha loves spending time with her husband, two children, three very active dogs and two lazy but very needy cats. Natasha prides herself in her attention to detail, friendly personality, and customer service skills. “I love that each day in Property Management is different, and I pride myself in bringing a positive attitude to the role and making the processing of renting for all parties as smooth and stress free as possible”. If you have any questions for Natasha or need to contact her you can do so via the details below.
MAY BIRTHDAYS
MAY ANNIVERSARIES
