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Investment Properties in the Burbs are Trendy

Not all property investors focus on high rise apartments. Many "mum and dad" investors and savvy boutique property developers are tapping into the suburban market building quality homes to attract families and professionals. The pandemic has focused many businesses to adopt a hybrid work model, offering people the choice to work from home. With properties in the suburbs affordably priced, it’s no wonder investors are banking on good rental returns and long term capital growth in master planned estates and regional areas.

An excellent example of this trend is this two storey residential home in the family friendly district of Bridgeman Downs, north of Brisbane.

In this case, the property was purchased new, enabling our clients to claim depreciation allowances for both the Building and Plant & Equipment assets (Divisions 43 & 40).

Our Property Tax team was engaged to prepare a comprehensive depreciation schedule based on historical costs for construction and assets.

Depreciation deductions on new assets included:

  • Kitchen equipment (dishwasher, exhaust and rangehood, oven, stove)
  • Blinds,
  • Ventilation 
  • Ceiling fans, 
  • Fire control systems such as detection and alarm systems, heat, manual call point, multi type smoke detectors.  

On completion of our depreciation report we found a total of $19,416 in depreciation deductions can be claimed during the first full financial year.  

Furthermore, over the next 40 years, our client and future investors can claim up to $419,500 in depreciation allowances. 

With more and more people moving to the suburbs and working remotely, larger homes, and an affordable rental market is making these areas attractive for investors.  

If you have built a new investment property or purchased an existing home and renovated, remember to keep all records of expenditure. Our Property Tax team can inspect your properties, plus review the builder’s contract and invoices to determine the appropriate values to prepare an accurate depreciation schedule. Order your report here.