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Depreciation Allowances Delivers Cash Flow for Melbourne Village Buy and Hold Investors

Investors in one of Melbourne’s finest new residential developments – Melbourne Village - will benefit from increased cash flow through depreciation allowances.

Partnering with Ironfish, a national property investment service, NBtax by Napier & Blakeley is pleased to provide comprehensive depreciation reports for their investors.  

Ironfish offers strategic property investment services and opportunities to build a portfolio of quality property assets based on sound market research and analysis.

Leveraging Ironfish’s relationships with many of Australia’s best developers, Ironfish investors gain preferential access to many iconic apartment, townhouse or house & land developments around the country. Ironfish has its own property development arms as well.

In addition to building a portfolio, equally important to Ironfish is to help their investors hold their portfolio over the long-term in order to achieve their long-term property goals.

For ‘buy-and-hold’ investors, managing cashflow is essential. Ironfish’s signature Portfolio Approach strategy is designed to help investors build a sustainable, diversified portfolio targeting a mix of capital growth and income. They also help their investors to take advantage of the cashflow benefits of property depreciation which delivers substantial tax savings for newly built properties.

Cash Flow Benefits for Melbourne Village, 377 Spencer Street, West Melbourne

A joint venture between Deague Group and Ironfish Developments, the Melbourne-based property development arm of Ironfish, Melbourne Village is a luxury apartment building featuring 496 apartments, 33 townhouses as well as commercial offices, retail outlets and amenities.  

Designed by award winning Bruce Henderson Architects, each apartment has been meticulously planned to maximise the spectacular views in all directions.

Melbourne Village offers residents comfort and luxury. Features such as a central garden, 25m indoor pool, business and library lounges, private cinema and gymnasium, car spaces and storage units will attract quality tenants as well enable investors to claim depreciation on a portion of these assets.  

Quality high-end fixtures and fittings contribute to the value of the depreciation allowances for investors as well. Our NBtax Property Analyst, Victoria Lyons inspected the apartments and calculated the depreciation value of the building and the plant & equipment assets.  These included, reconstituted stone kitchen benchtops and island benchtop, stone bathroom vanity top, plus Miele electric oven, gas cooktop, and European rangehood, dishwasher, ducted air conditioners, intercom and security systems, timber flooring, and quality carpet.

Based on our calculation using the Diminishing Value depreciation method for the Building (Division 43) and Plant & Equipment (Division 40), investors purchasing these apartments can expect a tax saving of approximately: 

  • $13,000 claimable in the first year for average 1 bed 1 bath with a car space
  • $18,000 claimable in the first year for average 2 bed 2 bath units with a car space.

NBtax National Residential Manager Kath Hemphill, said “Our Residential Tax team worked closely with our Napier & Blakeley Quantity Surveyors in Melbourne to provide the most accurate costings for this development. We’re pleased to support Ironfish’s developments and investors.”

The future of West Melbourne

Ironfish has a dedicated in-house property selection and research team, which is responsible for monitoring the markets and identifying great locations and developments to recommend to Ironfish investors.

Speaking about the location of Melbourne Village, Ironfish Director, Property & Research, Grant Ryan states that the West Melbourne location ticks many boxes.

“West Melbourne as a suburb has flown under the radar for some time now, however the new West Melbourne Structure Plan is sure to change that.

“The suburb has been given a new direction, one that will create better transport, greener streets, and importantly a bigger and more vibrant retail scene and community atmosphere. As the plan is adopted over the coming years, it will be fascinating to watch West Melbourne transform. As new cafes, restaurants, parks and potentially a tram line along Spencer Street arrive, more and more Melbournians will realise this is an incredibly well-located suburb, with big potential.

“Being adjacent to the CBD, and a stone’s throw from Melbourne University and the hospital precinct along Flemington Road, this undiscovered pocket won’t stay undiscovered for long. We congratulate our many investors in Melbourne Village – we think this is an asset with great long-term potential,” said Mr Ryan.

Thank you to the Ironfish team for enabling the NBtax by Napier & Blakeley team to be part of the Melbourne Village Development. Here’s what they had to say about our role in helping investors to save thousands in taxes and maintain cash flow.

“NBtax has been very thorough in their approach and assessment to provide detailed depreciation reports for our many investors in ‘Melbourne Village’. Our aim is to help our investors, not only acquire a portfolio of quality properties – like Melbourne Village – but also to hold them over the long-term. Providing a quality depreciation schedule can help with cashflow for our investors, and accordingly, help them achieve their long-term goals. We are pleased to be able to partner with a selection of premium suppliers, including NBtax, as part of our unique service offering to our investors,” said Ironfish National Client Care Manager, Fiona Lau.