Our Service

Property Research - what to look for
Using Depreciation to maximise your cash flow

What if someone could research Australia and bring to you the best locations and opportunities within those locations to invest in? That’s exactly what we do.

As Buyer’s Agents we act on behalf of YOU, the buyer - "our client".  We source properties for you in areas that are about to BOOM so that you reap the rewards without any extra effort.

By the time he turned 32, Director and location researcher for the wHere ? group, Todd Hunter, and his partner, had accumulated a personal property portfolio consisting of 50 properties. Todd extensively researches locations around Australia that fit into his strict property investment criteria and then brings the best opportunities within these locations to his clients – property investors like YOU.

The wHere ? group service to YOU consists of:

• Formulation of a personalised game plan to suit YOUR individual needs and aimed at achieving YOUR property investment goals;
• An initial analysis of available property opportunities within our chosen locations and based on current asset, servicing and equity position;
• A schedule of depreciation on the property after settlement from a leading national Quantity Surveyor company;
• A 12 month review report on the area in which you have invested;
• Arrangement of the annual building pest inspection  at a discounted cost to client of $150;
• Subscription to Bi Monthly electronic newsletter with property information, new locations, hot spotting tips, latest interest rate changes etc ;
• Ongoing verbal and/or written advice with recommendation to sell or hold asset based on current market improvements and maturity.

Read more about the key people @ wHere group and their stories.

Property Research, what to look for

The following are a few of the sources of information that we use to research property investment locations:

• BIS Shrapnel
• Residex
• Reed Construction Data
• Real Estate Institute of Australia
• Australian Bureau of Statistics
• Heron Todd White
• Australian Financial Review
• RP Data

These sources incorporate the broadest possible cross section of current market data, market analysis and forecasting – from Government, regulatory and leading private industry bodies.

In addition we have a dedicated research department responsible for on-the-ground research. We believe that in addition to the theory, it is necessary to personally inspect each property to ensure that it is the right type, is surrounded by appropriate local facilities, attracts the right sort of tenants and generally meets all of our selection criteria. While formal research and data is essential, our on the ground research allows us to give you the right advice with absolute confidence.

Using Depreciation to maximise your cash flow

Depreciation is a legislative allowance introduced by the Australian Tax Office (ATO) that allows property investors to claim back the decrease in value of their properties and fittings.

However, it is important to get the right advice so you can claim the maximum depreciation on your property, therefore maximizing your cash flow.

Depreciation can be claimed to compensate for the decline in value of the building and assets over the period in which the property is used to produce an income.

There are two distinct depreciation allowances available for investment properties:

1. Division 40 - Depreciable Assets (Plant and Equipment Allowance) e.g. carpets, cook top, ovens, air conditioner, window blinds or curtains, dishwasher, dryer and hot water system.

2. Division 43 - Capital Works Allowance (Building Write-off Allowance).
Regardless of age, all properties contain some form of claimable depreciation such as Depreciable Assets, which is re-valued and given a new effective life from the date of settlement. In addition, Capital Works Allowance is available for all residential investment properties with a construction start date from 18 July 1985.

To use an analogy, if you purchase a vehicle for the sole purpose of earning a living then under income tax law you are allowed to claim the depreciation of the vehicle against your current income.

The value (its net worth) gradually reduces over time as it wears out and gets old. In recognition of this fact, the Government has allowed the cost of the vehicle to be written off over a period of time (depreciation).

If a vehicle cost $1,000 and it was to last five years (its effective life) with 10% residual, that means after five years it is written down to $100 (its residual value).

Therefore the depreciation would be 18% per year. i.e. 100% - 10% = 90% / 5 years = 18% which equates to $180 depreciation per year (straight line analysis)?

Therefore if your tax rate was 33c in the dollar you would receive $180 x 0.33 = $59.40 benefit assuming your business was making a profit.

A residential property purchased for an investment can be regarded as business expense and therefore the same rules apply. When preparing your tax return, you should claim the maximum allowable depreciation on your investment property to ensure your cash flow is maximised.? You may also be able to claim the cost of demolition and improvements made to the property.

The best way to do this is to have a depreciation schedule prepared by qualified professionals. The schedule will list all allowable buildings, plant and equipment, their value and the depreciation allowance that can be claimed. Armed with this information your accountant or tax agent can ensure you are getting the most out of your investment property.

All of our clients recieve a Depreciation Scheduale, we use a very reputable company who we are based Australia wide.

Like to know more?

Contact us to arrange an obligation free consultation.