With inflation still rising currently at 7.3% in the quarter, and the RBA current cash rate of 2.85% announced on the 2 November 2022 it is a critical time for investors. In just a short space of time, we have seen the cash rate increase from just 0.1% in April 2022 by a further 2.75% . In monetary terms, this is an extra $13,750 in annual interest payments made to lenders on a typical $500k loan! for every increase of 1% that is another $5,000 a year in payments!
As a Quantity Surveyor who works with thousands of residential and commercial clients throughout Australia, I get asked on a daily basis where will house prices will go….. Well I am no economist however as an Investor myself, working with industry professionals daily, we are hearing of the strain these extra interest payments have on cash flow. Banks have already started to tighten lending criteria, and some investors will start to default resulting in repossessions of property! Where will house prices go?….. Well it will depend on how aggressively the RBA wants to control inflation and get back to the target levels of just 2-3%, this at the moment will be a huge task. During these difficult times, the only consolation is any interest payment increases will be offset against your taxable salary, negative gearing will increase… and tax going to the ATO will reduce.
With all this happening around us and as a Quantity Surveyor, I cannot believe investors are still not claiming for the second largest deduction after the huge interest payments “Tax Depreciation” Whether you have bought a new property, added value through a renovation, replaced old assets…. This can all be claimed through depreciation deductions.
It is our commitment to our clients and partners to work hard for investors. Maximum deductions will be found and quantified, utilising the current tax legislation and guidelines. I will personally provide a Iron Clad Guarantee that if we cannot find $80,000 in Total Tax Depreciation deductions, The Report Will Be Free!
