Offset Rising Cost of Interest Rates by Claiming Property Depreciations

Property depreciation is defined as the decline in value of a building and its assets over the time due to wear and tear as well as physical deterioration. Depreciation on rental property or investment property is treated as an expense and is a part of the income statement. Actually property depreciation can be applied only to the building and not the land, since land is not considered to wear out over time.

Generally there are two types of costs that can depreciate for an investment property;

1. Wear and tear of the fixtures and fittings of a property. 2. Capital works deductions, which are applicable to the cost of the construction and are spread over the lifetime of the property.

One of the biggest advantages of property depreciation is that they are non-cash deductions. It means that you do not need to outlay funds for claiming the deductions. The Australian Taxation Office (ATO) allows you to claim the depreciation on rental property because they realize that the value of fixtures, fittings and other assets of a building reduce over time and will require replacement.

Claiming depreciation on rental property, will help you to offset the rising cost of interest rates. Just like you can claim wear and tear on the car you purchased, you can also claim property depreciation on your investment property.

Calculating property tax depreciation schedule is a complex task, which requires skill and experience in both construction costs and tax laws to generate an accurate report.

It’s important for property investors to at least investigate whether or not they are eligible to any tax deductions on their investment property. The easiest way to find out is to contact a reputable quantity surveying firm such as Property Returns, which specialises in preparing property tax depreciation report for residential as well as commercial properties. We will just ask you a few standard questions to ascertain whether it is worthwhile, and how much deductions you can claim. The fee to prepare a tax depreciation schedule is 100% tax deductible.

How much property depreciation you can claim?

The amount of property depreciation deductions you can claim depends on the four factors, mentioned below:

1. Plant Assets: The value of plant asset items bought with the property at settlement. 2. Building Allowance: The historical cost to build the original structural element of the property, note that this allowance is only applies to properties built after 1988. 3. The cost of any improvements like renovations or extensions on pre-purchase property to change the original structure by the previous owner. 4. The cost of any expenditure by the owner after settlement is considered as post purchase expenditure.

Property Prices Stagnant But Not Dropping In Goa

While property prices in the country as a whole are tanking fast, real estate in Goa is presently stagnant, but are yet to go down significantly, say real estate developers. Over the last four years, Goa has attracted huge investments for holiday homes from overseas Goans, NRIs and wealthy North Indians.
Real estate operators say that property with a good sea view is always in demand. Earlier, though, properties in interior Goa with a reasonable proximity to a city were also in great demand, sending land prices soaring.

The big property boom started in 2003, and never stopped till the US-based Lehman Brothers went bankrupt late last year. For example, land prices in Panjim nearly doubled in the last year. Other places, too, have seen better-than 20 per cent annual increases.
Since October, though, real estate demand has dropped to half, owing to the global recession and statewide protests against mega-projects. This has stabilised property prices, which have reduced by a minor 5 to 10 per cent. However, the industry expects property prices to drop by 20 to 25 per cent in the coming months, especially from small developers, who are not in a position to hold on.
Many of these small developers are from Delhi and Mumbai. They joined the gold rush to develop property in Goa but have now run out of money and are left with unfinished projects, thanks to the credit crunch. They have been the first to drop rates and resort to panic sales.

Reputed developers are hurt badly, but still prefer to hold on. They feel the present slump is the result of panic, and since land with clear titles is scarce in Goa, the prices are bound to recover and stabilise, unlike in Indias big cities and metros. Consequently, even those who bought land at very high rates in the past few years are not willing to cut prices.

The next few months will tell whether they are right or wrong. Buyers, however, are very scarce at present.

So, one sees a paradoxical situation of sellers who are unwilling to drop prices, even though there are no takers for their properties. We will have to wait and see which one blinks first

Commercial property management Vancouver

Taking care of commercial property is always not an easy task to take care of single handedly. There is usually so much that needs to be taken care of so as to maintain not just the face value of the property but also maintain its market value. Property management Vancouver helps you to maintain the overall worth of your commercial property in the most reliable and cost effective way.

When you are looking for a commercial property management Vancouver, it is important to work with an exceptionally experienced company. This would ensure you of the ability to get realistic services at any time regardless of the kind of services that you may require.

The number of years that a property management Vancouver Company has had in the industry is important to note. You are obviously in need of a company with a renowned reputation and a lasting service whenever you need it. Working with a company that has been in the industry for quite some time would give you the desired confidence.

It is just natural that when the company can maintain its service provision for a good number of years then it is most definitely reliable. You would therefore have all the confidence to deal with such a property management Vancouver Company for your commercial property maintenance needs.

The better business bureau is another point of confirmation about a property management Vancouver. This is a good source of information regarding the authenticity of whichever company you are about to engage into your property maintenance. You would then be able to trust your property into the hands of a company which would offer you with desirable services as promised.

It is always a good thing to know whether the company you are dealing with is dully registered. The company should be having all the required certificates to operate as a property management Vancouver Company so as to assure you of quality service provision.

Property management Vancouver does everything for you as long as your property is in their hands. It is very fulfilling as you have no reason to worry about stuff like marketing, finding of tenants, collection of rent, maintenance of the property, paying of bills and every other thing that may make your property to be market worthy and viable.

You can now have a rental property and still maintain quality peace of mind. It is absolutely stress free to have your property well maintained for you. Property management Vancouver allows you to achieve just that and still be able to enjoy the revenue that your property is able to earn you during the time.

Property management Vancouver understands the need to have your rental properties well maintained. Everything is done to you in a professional manner so as to allow you to reap the best revenue from your investment. Getting property management Vancouver services allows you to have things done for you in a very professional, reliable and cost effective manner.

Useful Checklist For Buying Commercial Property

Buying commercial property is as challenging as purchasing real estate unit. Perhaps, it requires more skills to search for a good commercial unit than to look out for a dwelling place. Parameters like the location, the prominence and the appearance of your commercial property would be influencing your business to great extent. Hence, you must be very tactful while looking out for buying commercial property. Take a look at the following checklist for buying commercial property.

Important Checklist for Buying Commercial Property

Decide at first what kind of commercial property you are looking for. Whether it is an office space or a customer oriented commercial property like a book store or a cafe. For the later of the two, you would definitely require a space which has good location and ample space for the convenience of the customers.

For buying commercial property you are advised to take help of a good real estate agent. The real estate agent would help you in short listing the properties that fit best with your kind of business. He would use his professional experience to identify the locational needs of your business and accordingly may advise you to negotiate for the right property with the correct price quote.

Appointing a real estate agent is also quite useful as by doing so you would be free from the burden of tackling the complex legal paperwork. You need not have to be worry about filling and submitting of the forms and necessary documents required during the transaction as these will be taken care by the agent in your presence.

While buying commercial property, if you are left with some extra amount of money for investment, purchasing commercial unit with some extra space would be a good idea. In future, your business would certainly expand and as a result of which you might soon be requiring more space to accommodate your commercial needs. In that case, you may use the extra space bought by you. Else, you have to again start the long process of looking out for bigger commercial properties elsewhere.
While buying commercial property, make sure that you receive important documents like the NOC and such from the previous owner of the property.

Has Upswing Begun In Residential Property Prices

It is true that the upswing has begun in residential property prices in India. In fact, the real estate market in India has gone through a downward trend in the immediate past. The market has witnessed a slump. Property prices have gone down. In the metro centres of India like Mumbai, Delhi, Chennai and Calcutta, during the recession period property prices on an average property rates went down by 33 percent. This has adversely affected the real estate industry and several investment companies as well as infrastructural development companies have suffered losses. Many institutional as well as individual investors found it hard to sustain. However, the grip of the slump became less and less severe as the days and months elapsed. Now the industry is back in the saddle and reportedly the upswing in property prices has begun.

Of late, there is an upswing in the residential property prices in India. Across India, in the prime urban locations during the previous quarterly period the property industry has witnessed an average 10 per cent appreciation in property value. As a matter of fact, this growth in property value is not confined to residential property alone. The growth is discernible in the commercial property as well. However, the growth rate in the residential property segment is much more noticeable than that of the commercial, property sector. In the commercial property sector during the corresponding period the value appreciation is below 5 per cent. There is reportedly an unprecedented demand for middle-level income type of residential units. This upswing in the middle-income level residential property is due to the revised pay scale for government employees and a better paying private sector.

Across India there has begun an upswing at the prices of residential property in India . It is reported that in the property market in the major South Indian cities independent residential houses show better value appreciation than apartment units or flats. This may be due to the higher affordability of the corporate sector clientele in Bangalore, Hyderabad and Chennai. In Delhi and Calcutta the residential property sector shows an average 10 per cent growth in the previous quarter and the trend is expected to continue in the remaining part of the year. In the suburban centres in India, the demand for independent floors and villas is on the increase. A major market trend witnessed in the prime locations across India is that the demand for single and double bedroom housing units is on the increase. Market experts are of the view that there is a price increase of about 15 percent during the current fiscal for the middle-income level residential units and the trend is expected to continue inn the coming years.