BENEFITS OF BRAND-NEW
DISCOVER THE BENEFITS OF BUYING A BRAND-NEW INVESTMENT PROPERTY According to the BMT Tax Depreciation 2019 investor survey, 63 per cent of investors prefer to invest in secondhand property. While second-hand properties are a valuable and more affordable investment, it’s important that investors consider the additional benefits of buying brand-new property.
BY BRADLEY BEER, B M T TA X D E P R E C I AT I O N
any relevant fixtures and fittings
all deductions available on
are also new, they are often more
the structure and any fixed or
durable, requiring less maintenance
mechanical assets.
and repairs.
Legislation changes made in 2017
Capital growth
mean owners of second-hand
Newer properties usually hold higher values than similar, secondhand properties in the same area. While there’s no knowing how the property market will perform, trends have proven that property values generally increase over time. The common goals of owning an investment property are to make extra income, build equity and
Increased tenant interest and low maintenance costs When an investor buys a brandnew investment property, it’s usually ready to be advertised to potential tenants straight away. Modern, brand-new properties tend to attract high tenant interest, strong rental returns and low vacancy rates depending on the market. Given that the structure and
increase capital growth. Investors who own brand-new properties hold a head-start on the capital growth curve. Additionally, the high rental yields new properties can produce maximised cash flow and returns during ownership.
investment properties can’t claim depreciation on previously used plant and equipment assets. Brandnew properties aren’t affected by the 2017 legislation changes, allowing investors to claim all available deductions. When a property is new it also allows the investor to claim all capital works deductions for the lifetime of the property (forty years), rather than just a part its lifetime. BMT Tax Depreciation find owners of brand-new investment properties an average of almost $12,000 in first full financial year deductions.
Higher deprecation benefits
BMT Tax Depreciation has been
Investors of brand-new investment
investors make informed decisions
the most trusted specialist in the
properties are eligible to claim
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industry for over 20 years. To help on the type of property they buy,
