A landmark former orphanage site in Surrey Hills could be transformed into a new residential community under plans lodged by <a href="https://www.apartments.com.au/developers/antipodean-land-developments">Antipodean Land Developments</a> that would deliver 76 apartments and townhouses while restoring some of the suburb's most significant heritage buildings.

The burgeoninng Melbourne-based developer has submitted plans for the 9,158 sqm site at 1 Kent Road and 24 Durham Road, home to the former St Joseph's Home for Destitute Children, a historic institutional complex dating back to the late 19th century. The proposal seeks to adaptively reuse several heritage buildings while introducing two new four-storey residential buildings set within extensive landscaped grounds.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> and Kerstin Thompson Architects, the project has been conceived as a contemporary residential village embedded within a restored heritage precinct. The development team describes the design approach as "The Village in the Garden," with new buildings positioned among mature landscaping by OCULUS and significant heritage structures.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="44ec8c1b-c0b6-44ae-859e-5811b3e6a023" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%281%29.png?VersionId=p.p1_KFh4iQoV4nisdnPfQBAsWNi7m79" />

The proposal would deliver 76 dwellings comprising a mix of apartments and duplex-style residences, significantly increasing housing supply on one of the largest privately held residential landholdings in Surrey Hills. The development includes 127 car spaces, 24 bicycle spaces and more than 1,000 sqm of communal amenity, with the existing chapel building earmarked for conversion into resident facilities.

According to the planning submission, the project centres on the restoration and adaptive reuse of the site's most significant heritage assets, including the original c.1889 St Joseph's building, the chapel designed by architect Augustus Andrew Fritsch, and the historic brick perimeter walls and entry gates. The proposal also incorporates the retention of other contributory buildings including the former infirmary and school building.

Tract Consultants, in the planning report accompanying the application, said the scheme had been shaped through extensive heritage analysis and design development.

"The shared vision for the Site by the project team has culminated in a scheme which successfully breathes life back into a historic site while delivering upon the objectives of Victoria's Housing Statement in a carefully curated and contextually responsive manner."

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="7263b7d8-95ea-400f-9531-6ca7d22c3c33" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%282%29.png?VersionId=4cR1tiWOsDpgxEOwZi5vVFcyvvOsYkIE" />

The proposal is being assessed under Victoria's Significant Residential Development with Affordable Housing pathway. As part of the application, three per cent of the project's residential development cost would be contributed to the Social Housing Growth Fund. The development would also provide a diverse mix of one, two and three-bedroom residences targeting a broader range of buyers than typically found in Surrey Hills' detached housing market.

Sustainability initiatives include an anticipated 66 per cent BESS score, natural cross-ventilation to 80 per cent of apartments, 28 per cent deep soil landscaping and a canopy cover outcome exceeding local planning requirements. The proposal also sets aside more than 1,083 sqm for communal indoor and outdoor resident amenity spaces.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="33fad46f-fe26-4d0a-acfd-6b776e1c6a3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design.png?VersionId=D9F6WVSyYCtGvSUmith35LRp6R7PQkw_" />

Planning documents describe the property as one of the largest underutilised residential sites in Surrey Hills, arguing it presents a rare opportunity to introduce "missing middle" housing in an established inner-eastern suburb while preserving and revitalising a significant heritage precinct.

Antipodean Land Developments has built a reputation for design-focused residential projects across Melbourne, particularly in the medium-density sector. Previous developments include Neighbourhood in Brunswick East, delivered with Breathe Architecture, and Balfe Park Lane, designed by Kerstin Thompson Architects.

They've been very active in site acquisition as they build out their future development pipeline. They recently launched Thornubury House, 45 apartments above a mix of commercial, retail, and food and beverage tenancies, and have plans for a boutique project in Fitzroy and another <a href="https://www.apartments.com.au/news/vic/antipodean-plan-apartments-for-deepdenes-missing-middle-on-whitehorse-road">"missing middle" project</a> on Deepdene's Whitehorse Road.

Joel Robinson

First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills

Developer <a href="https://www.apartments.com.au/developers/auyin-property-development">Auyin</a> is the latest to turn to the Victorian Government's Development Facilitation Program in an effort to secure approval for its long-planned, mixed-use project in Elsternwick.

In 2018, Auyin lodged plans with Glen Eira City Council for a 14-storey building, however Council approved a reduced eight-storey scheme. A subsequent VCAT appeal in 2019 upheld the eight-storey height limit.

The project was later amended to nine storeys, but Auyin is now seeking to revive something closer to its original vision. The developer argues that the planning context has evolved significantly over the past decade, particularly within the Elsternwick Activity Centre, where higher-density development has increasingly been encouraged along Glen Huntly Road.

The proposal would transform the 1,239 sqm site at <a href="https://www.apartments.com.au/new-apartments/7-12-horne-street-elsternwick-vic-3185">7-15 Horne Street</a>, opposite Elsternwick Railway Station, into a 13-storey residential and retail development designed by CBG Architects, with 40 apartments

The site currently comprises three commercial properties.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="5f465dd4-509b-4082-a669-0253b313914b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20podium.png?VersionId=72frWi0SmQ5AVJ3ARRhX5ILUYObhTm7x" />

The proposed apartment mix comprises 25 two-bedroom and 15 three-bedroom residences above 200 sqm of retail space at ground level. Residents would have access to a 90 sqm wellness facility, a 351 sqm communal indoor and outdoor terrace on the third level, and extensive landscaped areas throughout the development. A publicly accessible 135 sqm plaza would be created on the north-east corner of the site, providing seating, landscaping, and a new gathering space adjoining Horne Street.

The design adopts a four-storey podium that references the finer-grain character of the surrounding streetscape, with the upper tower recessed behind generous setbacks on all boundaries.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="e637e763-2abc-4c34-a0aa-5c7ad36fae18" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20open.png?VersionId=J1AoOpZgTyaF.KeeFSX6lMjEScX8KKRi" />

A key element of the proposal is the reconfiguration and widening of the surrounding laneways. Vehicle access would be retained from Lois Lane, with upgraded pedestrian connections linking Ross Street and Horne Street. The development would provide 58 residential car spaces, two retail car spaces, and 52 bicycle spaces across two basement levels and ground-floor facilities.

Architecturally, the building draws inspiration from the established character of Elsternwick Village. The façade combines dark charcoal brickwork, textured concrete, bronze-toned metal detailing, and extensive planting integrated into podium and tower levels. The design also incorporates a chamfered corner treatment and publicly accessible plaza intended to strengthen pedestrian activity around the station precinct.

Elsternwick's last new development completion was&nbsp;EVA Elsternwick by Pitard late last year. <a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a> is working away on its nature-led neighbourhood, <a href="https://www.apartments.com.au/new-apartments/elsternwick-gardens-by-milieu-8-gordon-street-elsternwick-vic-3185">Elsternwick Gardens</a>, on Gordon Street, with its first stage expected to complete next year.

First look: Auyin seeks mixed-use apartment project in growing Elsternwick Activity Centre

<a href="https://www.apartments.com.au/new-apartments/otium-parkdale-123-125-como-parade-east-parkdale-vic-3195">Otium Parkdale</a>, the 13-residence boutique development by&nbsp;<a href="https://www.apartments.com.au/developers/huxtable-property">Huxtable Property</a>, has entered its final stages of delivery, with completion expected within the coming month and more than half of the residences sold.

The Como Parade East project is nearing the finish line at a time when opportunities to purchase new apartments in <a href="https://www.apartments.com.au/developments/parkdale-vic-3195">Parkdale</a> remain exceptionally limited. Fewer than 10 per cent of dwellings in the bayside suburb are apartments, making developments like Otium a relatively rare addition to a market traditionally dominated by detached housing.

[smartcode_project:default project_id=134974 project_image_fid=5427]

The three-level development comprises 13 residences, including ten two-bedroom apartments and three larger three-bedroom homes, all positioned above a secure basement car park.

Designed by <a href="https://www.apartments.com.au/architects/almeida-architects">Almeida Architects</a> with a strong connection to its coastal surroundings, Otium combines red brick, exposed concrete and dark metal detailing with integrated landscaping and greenery. Expansive glazing, generous balconies and terraces have been incorporated throughout the design to maximise natural light and reinforce indoor-outdoor living.

Inside, the residences feature engineered European oak flooring, natural and reconstituted stone benchtops, Bosch kitchen appliances, ducted heating and cooling, lift access and secure entry systems. The larger three-bedroom residences on the upper level have been designed with house-like proportions, while the two-bedroom apartments prioritise functionality, flexibility and low-maintenance living.

[smartcode_project:default project_id=134974 project_image_fid=5421]

The project is now in its final stages, with <a href="https://www.apartments.com.au/builders/labco">Labco</a> completing the remaining landscaping and external finishing works following the completion of the residences' interiors.

Otium's location within the heart of Parkdale continues to underpin its appeal. Residents will be just steps from local cafés, restaurants, shops and the newly elevated Parkdale Station, while the beach is less than a kilometre away.

With the project tracking ahead of schedule, buyers can currently secure a residence with a five per cent deposit and benefit from settlement terms of up to eight months. The advanced stage of construction also provides buyers with the opportunity to walk through the near-complete residences and experience the quality and finishes firsthand ahead of completion.

[smartcode_project_cta:default project_id=134974]

Otium Parkdale enters final month before completion as rare apartment opportunity nears sellout

A new boutique apartment development is entering the market in <a href="https://www.apartments.com.au/developments/chermside-qld-4032">Chermside</a>, with Brisbane-based developer <a href="https://www.apartments.com.au/developers/ausdev">Ausdev</a> bringing 33 residences to a well-connected pocket of Brisbane's north.

<a href="https://www.apartments.com.au/new-apartments/parkdrive-apartments-chermside-25-sammells-drive-chermside-qld-4032">Parkdrive Apartments</a>, at 25 Sammells Drive, will comprise a mix of one- and two-bedroom residences positioned within walking distance of Westfield Chermside, The Prince Charles Hospital, and Bradbury Park.

Established in 1989, Ausdev has a long-standing presence across both development and construction, with Parkdrive Apartments representing its latest residential project in Brisbane's northern suburbs.

[smartcode_project:default project_id=152125 project_image_fid=363778]

The development has been designed around open-plan living and natural light, with residences featuring stone benchtops, timber cabinetry, BOSCH appliances, and private balconies that extend the living areas outdoors.

Kitchens are positioned as the centrepiece of the homes, incorporating natural material palettes and integrated appliances, while bathrooms have been designed with a focus on functionality and understated finishes.

Residents will have access to a communal barbecue and entertaining area on Level 3, providing shared outdoor space within the development. Secure parking and lift access are also incorporated into the building.

The project will deliver a limited collection of 33 apartments, with one-bedroom residences priced from $749,000.

[smartcode_project:default project_id=152125 project_image_fid=363782]

Beyond the building itself, the location places residents within easy reach of several of Chermside's key amenities. Bradbury Park is around 350 metres away, while Westfield Chermside is approximately 1.3 kilometres from the site. The Prince Charles Hospital is located within 750 metres, and the Chermside Bus Interchange is around 1.5 kilometres away, providing connections across Brisbane.

Parkdrive Apartments adds to the growing residential pipeline in Chermside, a suburb that continues to evolve as a major retail, healthcare, and transport hub for Brisbane's north.

[smartcode_project_cta:default project_id=152125]

Ausdev introduces boutique Parkdrive Apartments to Chermside's growing centre

<a href="https://www.apartments.com.au/developers/skymark-group">Skymark</a>'s boutique Cronulla development Solis has secured a 10-year Latent Defects Insurance policy through Resilience Insurance, providing buyers of the 16-residence building on Ewos Parade with structural and waterproofing protection that extends a decade beyond the building's completion.

Currently under construction and due for completion in late 2027, <a href="https://www.apartments.com.au/new-apartments/solis-cronulla-8-ewos-parade-cronulla-nsw-2230">Solis</a> is one of a small number of new developments in the Sutherland Shire to carry Resilience LDI coverage, a distinction that carries increasing weight as buyer confidence in the off-the-plan sector continues to be shaped by how developers stand behind their product.

Latent Defects Insurance, which entered the Australian market in 2022 when Resilience Insurance was approved to offer the cover, protects buyers against major structural or waterproofing defects for ten years post-completion. Unlike traditional statutory warranties, it operates as a first-resort policy, if a covered defect arises, the insurer responds directly, without the buyer needing to pursue the builder or developer through a lengthy claims process.

Resilience Insurance CEO Corey Nugent has noted that the product addresses something fundamental to the new apartment market.

"The overarching feedback from prospective buyers in the new development space is that they want more confidence and assurances around the quality of the build," Nugent says.

"Resilience Insurance Latent Defects Insurance not only gives them complete peace of mind for 10 years, but it shows the developer they are buying from is standing by their product."

[smartcode_project:default project_id=150499 project_image_fid=370898]

For Solis, the Resilience LDI policy adds a meaningful layer of accountability to an already considered project. The development comprises nine two-bedroom and seven three-bedroom residences, including one dual-level three-bedroom apartment, across a five-storey building on Ewos Parade, positioned between Shelly Beach and South Cronulla.

Garden apartments connect directly to private landscaped courtyards, while upper-level homes capture beach views to the east from level four and above.&nbsp;

All 16 residences include at least one balcony or courtyard, and select apartments on the upper floors feature bar areas and secondary flexible living spaces.

Hiba Sander, Managing Director of Skymark, says Solis offers a rare balance, nestled between the quiet beauty of secluded beaches and the lively charm of South Cronulla's esplanade.

"It's a place to choose your pace and live gracefully, seaside'," Sander says.

[smartcode_project:default project_id=150499 project_image_fid=370900]

The architecture, designed by <a href="https://www.apartments.com.au/architects/ida-design-group">IDA Design Group</a>'s Michael Trinh, draws from the natural erosion patterns of <a href="https://www.apartments.com.au/developments/cronulla-nsw-2230">Cronulla</a>'s sandstone headlands, translating the organic forms of the coastline into soft curves, pavilion-style massing, and a material palette chosen for longevity in a salt-tinged environment.&nbsp;

Textured natural stone, soft renders, and timber-look battens reference the tones of the surrounding cliffs, while the building has been oriented to maximise natural light and passive ventilation, with primary living spaces facing north and east to capture morning sun and sea breezes.

"At Solis, our aim was to create architecture that feels quietly confident, grounded in natural materials like stone and timber, and elevated by light and landscape," Trinh says.&nbsp;

"The buildings are designed to sit gently within their coastal surrounds, with expansive glazing and abundant greenery creating a seamless dialogue between inside and out."

[smartcode_project:default project_id=150499 project_image_fid=370897]

Interiors by <a href="https://www.apartments.com.au/architects/hot-black">Hot Black</a> carry the same material language through to every room. Kitchens feature integrated Gaggenau appliances, sculpted stone benchtops, and Lo &amp; Co joinery, while bathrooms feature natural stone, timber, and brushed metal finishes.&nbsp;

Hot Black Founder and Design Director Sophie Safrin describes the intent as one of considered restraint: "At Solis, every detail has been thoughtfully considered to create a timeless coastal retreat, calm, refined, and effortlessly liveable. From natural finishes to seamless indoor-outdoor flow, Solis offers a quiet elegance that's deeply connected to its surroundings.

The landscape, designed by Julian Brady of <a href="https://www.apartments.com.au/landscape-architect/sitedesignstudios">Site Design Studios</a>, treats green space as an integral part of the resident experience rather than an afterthought.&nbsp;

"Gentle curves and layered native plantings mirror the ebb and flow of the ocean," Julian Brady says, "creating a serene connection between architecture and place."&nbsp;

Coco Republic has provided bespoke furniture packages tailored to the project's coastal palette.

[smartcode_project:default project_id=150499 project_image_fid=370899]

Skymark has an established track record in the Sutherland Shire, with a portfolio spanning Cronulla, Woolooware and Burraneer that includes Isla, Sylva, Bask, Shells, Sula and Mist. Securing LDI on Solis reflects a broader shift in how the developer is positioning its buildings to buyers, at a time when Resilience Insurance expects the policy to become mandatory in New South Wales by 2028.

Sales at Solis are launching soon through Ray White Projects, with an official event scheduled for 11 June. Enquire for more information.

[smartcode_project_cta:default project_id=150499]

Skymark takes out 10-year Resilience Insurance LDI at Solis Cronulla

depreciation

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With the end of the 2015/16 financial year less than two months away, Angus Raine, executive chairman of Raine &amp; Horne, is urging Australian property investors to have a current depreciation schedule in place by 30 June 2016.
“Almost 80 percent of landlords fail to maximise depreciation claims against their investment property, potentially missing out on thousands of dollars come tax time,” says Mr Raine.
“The problem is that many landlords either aren't aware of the benefits associated with depreciation, or don't have an up-to-date depreciation schedule, which enables them to claim against the reduction in value of items such as carpets, curtains, stove cook tops, some light fixtures, shower heads and so on.
“Each year, landlords can claim between 10 percent and 40 percent off a variety of depreciable items, and sometimes more.
“In many cases, 2.5 percent of the building cost of the investment home is also claimable on an annual basis.”
Landlords should seek professional support when creating or updating a depreciation report, according to Mr Raine.
“Arranging a specialist tax depreciation company such as BMT to carry out the report will ensure that everything is done by the book,” says Mr Raine.
This advice is particularly appropriate for established properties, where it is also possible to back-date missed depreciation claims by two years.
“Always seek professional advice for established investments as it can be trickier to navigate the tax deductions.
“Moreover, the costs associated with a depreciation schedule, which can be between $650 and $700 per report, are also tax deductible,” advises Mr Raine.
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jchancellor-FAypfDUnLy

Property 101: Maximising depreciation claims

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<div>No surprise that the Reserve Bank of Australia opted to leave interest rates on hold at 2% yesterday, preferring to "wait and see" how data flows play out in the months ahead.</div>
<div> </div>
<div>Not all that many surprises in the <a href="https://www.rba.gov.au/media-releases/2015/mr-15-11" target="_blank">media release</a> either in truth. </div>
<div> </div>
<div>Perhaps the most notable point was this:</div>
<div> </div>
<div>"The Australian dollar has declined noticeably against a rising US dollar over the past year, though less so against a basket of currencies. Further depreciation seems both likely and necessary, particularly given the significant declines in key commodity prices."</div>
<div> </div>
<div>Although the Aussie dollar has touched a six year low against the US dollar at 74 cents, with commodity prices in an ongoing funk, the Reserve Bank wants to see further depreciation still. </div>
<div> </div>
<div><a href="/images/2015/07/08/audusd.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/07/08/audusd.jpg" alt=""></div>
<div> </div>
<div>
<div>Just how much further depreciation is open to interpretation, but given the strength of the wording one might safely assume that this means at least 10 per cent, and probably more.</div>
<div> </div>
<div>With the release also noting that "monetary policy needs to be accommodative" there is every chance that interest rates will fall again at some point within the next year.</div>
<div> </div>
<div>Futures markets are all but pricing in another cut over that time frame.</div>
<div> </div>
<div><a href="/images/2015/07/08/RBA.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/07/08/RBA.jpg" alt=""></div>
<div> </div>
<div>
<div>Asset markets</div>
<div> </div>
<div>The ASX 200 (XJO) surged by well over 100 points for no apparent reason to record its second strongest trade of the year to date.</div>
<div> </div>
<div>Another interesting development this week has been lenders tightening the screws further on investor loans.</div>
<div> </div>
<div>As of today Westpac - the Australian bank with the largest dollar amount of credit outstanding to investors - will reportedly apply a maximum 80 per cent loan to value ratio on its investment loans.</div>
<div> </div>
<div>This will make it comparatively more difficult for investors without substantial deposits to purchase property.</div>
<div> </div>
<div>To compensate we can expect that some lenders will instead encourage owner occupier loans, perhaps by dropping lenders mortgage insurance in some instances, or by dropping standard variable rates in others.</div>
<div> </div>
<div>The regulator APRA has evidently applied heavy pressure to banks and other lenders to slow the pace of credit growth to investors, and therefore the outlook for our property markets will shift accordingly over the period ahead.</div>
<div>
 With rock bottom interest rates all but assured through 2015 and 2016 we can expect to see a shallower but probably longer recovery in property markets, driven increasingly by owner occupiers.</div>
<div> </div>
<div>Another point of interest is that certain capital city markets have already been distorted by a steady flow of foreign capital, while simultaneously we also have a central bank which wants to depreciate the currency by a further 10 to 20 per cent. </div>
<div> </div>
<div>This may well be the action which opens the sluice gates...just sayin'.</div>
<div> </div>
<div>
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>. 
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.
</div>
</div>
</div>
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pwargent-M4siyDbqQY

No surprise from the RBA: Pete Wargent

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<img src="/images/2015/07/08/NBtax_PO_SponsoredLogoLink-01.jpg" alt="">
SPONSORED POST
Napier &amp; Blakeley this month are proud to launch NBtax, a breakthrough online property tax depreciation service to help property investors maximise their returns.  
Louise Hegarty talks with Chris Page, Napier &amp; Blakeley’s National Manager of New Projects about the revolutionary product that just had to happen.
“Over 70% of property owners under-claim their property tax depreciation allowances and many don't even claim them at all,” says Chris.
“It's a property investor's secret weapon for better cash flow yet sadly is widely misunderstood.  So we've created a simple solution that will help maximise a property investor’s return while making the whole process easier.”
Called NBtax, the online request service uses current technology to access Napier &amp; Blakeley's specialist property tax depreciation Quantity Surveyors.
“NBtax means investment property owners can start the process quickly and easily without the need to spend too much time going to and fro.
"Once you submit the required information, our expert teams get on with tailoring your property tax depreciation schedule, setting you up for the depreciable life of your investment.”
“We, Napier &amp; Blakeley, were the first in Australia to provide specialist property tax depreciation advice in the mid 80’s, and thirty years later we’re still the market leaders.
"A professional property tax depreciation schedule can boost your cash flow potentially by tens of thousands of dollars over the life of your investment.”
Yet many property owners stumble here, says Chris.
“A simple lack of knowledge and the specialist nature of depreciation means investors under-claim and at times even avoid the process often missing out on thousands. A poorly calculated property tax depreciation schedule is mostly likely costing you money right now!”
And no property is too old or small to benefit, Chris adds.
“Commercial, residential or industrial, brand new, renovated or just old, every investment property has the potential to further increase your cash-flow.
There's money sitting there waiting to be claimed. It's just a matter of taking the first step in the right direction, and that's where NBtax comes in.”
We all know that reducing our taxable income means one thing – more money in our pockets. It’s now easier and faster than ever before – with NBtax.
To find out more about NBtax, <a href="https://www.nbtax.com.au" target="_blank">click here</a>. 
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NBtax is here, just in time for FY2015 tax time: Napier & Blakeley

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With the amount of popularity renovation shows multiplying over the last decade, many people now chose to go down the DIY path to spruce up their homes and investments.
Last year the value of alterations and additions to residential buildings was estimated to be over $500 million, according to the Australian Bureau of Statistics.
All up, investors are claiming $25 billion worth of rental reductions every year.
With the help of Tyron Hyde and his book, <a href="https://www.claim-it.com.au/" target="_blank">Claim It! A Property Investor’s and Developers Guide to Depreciation</a>, Property Observer takes a look at 10 depreciation considerations for every renovator.
<img src="/images/2014/07/04/yellow-one.jpg" alt="" style="float: left;">What you are claiming?
Around June every year the Australian Taxation Office (ATO) issues a warning to property investors to be careful about what they claim. Their major warning is aimed at people who are claiming repairs. Investors often claim repairs that are illegitimate. Things such as renovations or replacing broken features are not repairs; rather they are capital improvements, something that an investor cannot claim. This can be a gray area and can get quite confusing.
Consider these questions before deciding whether you can claim the work as a repair or whether you need to depreciate the work over time:
<ul>
<li>Was the work related to the wear and tear of the property while it was an income producing asset for you?</li>
<li>Were the repairs carried out when you initially brought the property? If so, these are defined as ‘initial repairs’ and cannot be claimed as an outright deduction.</li>
<li>Did you replace a whole item in its entirety? If so this is not a repair</li>
<li>Did you improve the material when you carried out the work? If so, this is called a capital improvement, not a repair, and is to be depreciated. </li>
</ul>
Source: Tyron Hyde, Claim It!
<img src="/images/2014/07/04/yellow-two.jpg" alt="" style="float: left;">There is more to making a profit than just a good renovation
One of the major mistakes investors make is having a mindset of: “The faster the completion, the sooner the returns”. Although in some cases this is true, at other times investors are so fixated on improving their properties that they miss out on gains that they could have been getting even while they are still planning out their renovations.
The point is to always be on the lookout for things that can turn a profit.
<img src="/images/2014/07/04/yellow-three.jpg" alt="" style="float: left;">What are you getting rid of?
Throwing away items that can later be claimed as depreciation assets is a mistake that investors commonly make. When renovating a property, its old unusable features (e.g. an old dishwasher) can still be claimed as a tax deduction. In the situation where the item cannot be recovered after being thrown out, with photographic proof and the help of a quantity surveyor it can still result in you gaining some return on the item.
It is important to note that the property must have been earning income for some time before the purchase was made in order to claim any residual or scrapping value. 
<img src="/images/2014/07/04/yellow-four.jpg" alt="" style="float: left;">Identify the values of your items
The values of old items in your property are the basis of the tax deductions you can get at the end of the first year of ownership. Without these values no tax deduction can initially be calculated.
So before throwing away old items in your income producing property identify the original values of these items by holding an inspection with a quantity surveyor.
<img src="/images/2014/07/04/yellow-five.jpg" alt="" style="float: left;">Finishing a depreciation schedule in time
The depreciation schedule you get on your property before renovation starts backs up your depreciation claims on old assets. It doesn’t back up any new assets put in once the house has been renovated. In order to claim these new assets a new depreciation schedule must be conducted before renovation finishes.
Article continues on the next page. Please click below.
 
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<img src="/images/2014/07/04/yellow-six.jpg" alt="" style="float: left;">Know what can be written off
Once renovations have been completed many investors think they can start writing off any newly installed assets, but this is not the case. A new item has to depreciate over its useful lifetime or the time frame specified for that item to last, before it needs replacing. As mentioned earlier you can run into many problems with the ATO when trying to claim something that is not a repair.  
<img src="/images/2014/07/04/yellow-seven.jpg" alt="" style="float: left;">Items you can’t depreciate
Although we can claim the depreciation of a property investment as a tax deduction not all construction costs are eligible to be claimed.
Here are some of the things that don’t qualify:
<ul>
<li>Demolition costs</li>
<li>Site clearing- It is important to note that excavating the site for a basement can be claimed as that’s considered part of the new basement </li>
<li>Landscaping- Landscaping elements such as retaining walls and concrete elements can be claimed. Plants don’t qualify- If it grows, you can’t claim it.</li>
<li>Developers profit</li>
</ul>
Source: Tyron Hyde, Claim It!
<img src="/images/2014/07/04/yellow-eight.jpg" alt="" style="float: left;">Depreciation on older properties
For properties built before July 1985 you cannot claim any building depreciations. But if a property built before this time is then later renovated you can, in most instances claim depreciation on the renovation. As long as the renovation took place after 1985, you are entitled to depreciate them.
A renovation on an older property that includes carpets, new blinds, a new bathroom and a new kitchen could cost up to $25,000. These assets can have big depreciation returns because the items being replaced have a relatively low effective life, this is the reason they needed replacing in the first place. Depreciation benefits like this can be up to $5,000 to $7,000 in just one year.  
Source: Tyron Hyde, Claim It!
<img src="/images/2014/07/04/yellow-nine.jpg" alt="" style="float: left;">Factors that the ATO use to categorise items under building or plant allowance
You can choose the effective lifetime or depreciation rate of an item that comes under the plant allowance. But for items that come under the building allowance category they must be claimed at 2.5 percent per annum. By knowing how the ATO choose what assets go into what category you can get a better understanding of what claims you can get on your assets.
The ATO determines which items go into each category based on factors such as:
<ul>
<li>The degree of affixation to the property</li>
<li>The physical life of the asset</li>
<li>Manufacturing specifications</li>
<li>Industry standards</li>
<li>The level of repairs by users of the asset</li>
<li>If the asset is leased</li>
</ul>
Source: Tyron Hyde, Claim It!
<img src="/images/2014/07/04/yellow-ten.jpg" alt="" style="float: left;">The Tax Commissioner believes the “manufacturing life” doesn’t necessarily equal the effective life
This is important to consider because the Tax Commissioner determines many assets to last for 40 years when they might not necessarily last that long.
Here is a list of items that the Tax Commissioner believes will last for 40 years but most likely won’t:
<ul>
<li>Kitchen cupboards</li>
<li>Light fittings</li>
<li>Shower Screens</li>
<li>Taps</li>
<li>Vanities</li>
<li>Floor and wall tilings in wet areas</li>
<li>Wet areas ceilings</li>
<li>Painting</li>
</ul>
Source: Tyron Hyde, Claim It!
What the tax commissioner fails to understand is that not only do some of these items fail to be effective for 40 years but also, in many cases these items need to be updated for style reasons as investors need modern assets to attract new tenants. 
It’s good to know what you’re entitled to and if you don’t find someone who does who can help you.  
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About to renovate? The 10 depreciation considerations for every investor

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If you’re buying a property or renovating this spring season, it’s worth considering how depreciation plays into the equation. Even a couple of small decisions can have a significant pay off.
Tyron Hyde, chief executive of quantity surveying firm Washington Brown explains that there are some items that can be depreciated at 100%. Essentially, this allows you to maximise your return from the start.
“Depreciation is really about claiming the wear and tear on your property, from carpets and blinds to ovens and dishwashers,” Hyde says.
“It’s a way to reduce your taxable income and it’s perfectly legal,” he says.
He suggests new buyers remember that new properties have a higher rate of depreciation, and that higher developments can have more claimed on them due to lifts and structural requirements.
Developments with pools and gyms can also often see more claimed, due to a higher ratio of plant and equipment to the purchase price, and he notes that lower priced properties have a higher depreciation ration.
Here are his four tips to remember:
<ol>
<li>
Individual items under $300 can be claimed immediately. If you’re buying a microwave, buy one that’s $299 instead of $319. This is better than depreciating it at the prime cost rate of 10% per annum (or $30 in the first year). That’s a 1000% increase. 
</li>
<li>
Big ticket items can be claimed too. If your portion of an expensive item is under $300, you can claim it. For example, a garage door costs $2,500 in a building of 10 units therefore your cost is $250. This amount can be depreciated immediately. 
</li>
<li>
Items valued between $300 and $1,000 can be depreciated at a higher rate. Through the low value pool method, you can claim these at a rate of 37.5%. So if you bought an oven for $950 you can claim $356. 
</li>
<li>
Split your report to get more. If you have bought a property as a group, say with family or friends, as your Quantity Surveyor to split the depreciation report between the investors to get more bang for your buck.</li>
</ol>
“Depreciation is the only non-cash deduction available to property investors,” says Hyde.
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Four little-known tips about depreciation: Tyron Hyde

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Investors are missing out on thousands of dollars worth of tax deductions by failing to take advantage of depreciation benefits, according to CBRE.
The real estate services company last week launched a tax depreciation service aimed at Australian residential property investors.
“It’s astronomical the number of people who are unaware of the depreciation benefits that are available to them,” said CBRE Capital Allowances National Director Neale Scott who leads the division.
Owners of new properties could often claim 2 to 4% of the purchase price in depreciation in the first year of ownership, Scott said. On a newly constructed property purchased for $400,000, for example, the depreciation benefit could be between $8000 and $14,000 in the first year.
“It’s significant,” Scott said.
But many investors did not know they could claim such deductions by obtaining a tax depreciation schedule for the property.
“There is a lot of reliance on accountants to do this work but accountants are the ones who use the schedules; they don’t prepare them,” Scott said.
A number of other companies can prepare tax depreciation schedules for investors.
Scott said CBRE had a large residential valuation business and could use its existing infrastructure to offer a cost competitive service in preparing depreciation schedules.
The scale of its business meant it could prepare the reports in a shorter time frame than many of its competitors. It aims to deliver depreciation schedules to its clients within five to 10 days.
“For every [depreciation schedule] that we do, we fully inspect the property which is also a massive point of difference,” Scott said.
The service is available across all metropolitan areas.
CBRE launched its Capital Allowances business in Australia about 12 months ago initially targeting commercial and agribusiness sectors.
“The addition of a residential platform enables us to offer a full suite of property and tax depreciation services across all sectors,” Scott said.
The business specialises in formulating depreciation schedules and providing associated advisory services, including preparing property reinstatement costs and depreciated replacement cost assessments. 
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Investors overlooking depreciation benefits: CBRE

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Less than 12 months ago CBRE launched their capital allowances business in Australia, adding to services offered in the UK and the US, and now they’re expanding the offering to include a residential tax depreciation platform.
The Capital Allowances division specializes in depreciation schedules and association advisory services, such as preparing property reinstatement costs and replacement cost assessments. Previously, they’d be focused on commercial sectors.
CBRE Capital Allowances national director Neale Scott said that they would capitalize on the residential valuations business to create a new national platform covering all metropolitan locations.
“With the advantage of a strong performing residential valuation business, we are in an ideal position to offer market leading pricing, report and delivery times,” Scott said.
“Having recently undertaken some of the largest assignments in the commercial Agribusiness sections, the addition of a residential platform enables us to offer a full suite of property and tax depreciation services across all sectors.” 
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CBRE adds residential to their tax depreciation services

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The word ‘depreciation’ is bandied about a lot and you may have noticed it being used more often around tax time.
This isn’t a surprise – depreciation is one thing that you can claim on your tax return every year to make your property investment’s overall cash flow a little bit better.
But what is it and how do you use it?
Think about depreciation like buying a new car. The second you drive it out of the car garage, as is often said, it has lost a bit of value. Over time, it further loses its re-sale value. This is a little bit like depreciation on property. Over time, your property depreciates.  You may be thinking “but I am investing for the property value to go up!”. Correct. However, while land appreciates in value, the building itself and all your fancy carpets and paint slowly drop in value over time.
This is what is called ‘depreciation’. What this means for property investors is that you can claim back a portion of these losses in your tax return each year – without it actually being a loss directly from your pocket. You are best placed to have a quantity surveyor assess your property and create what is known as a depreciation schedule. This figures out, based on what is in your property (and any renovations that have occurred), how much it will depreciate by over its life span.
As a rule of thumb, brand new properties have more depreciation to claim – as they haven’t depreciated at all yet – when compared to an equal size and quality established property. These figures can range significantly, but have been known to be in the thousands of dollars.
Depreciation isn’t limited to property, although we’ll obviously discuss it in those terms. For instance, businesses who purchase a vehicle, or equipment, can also claim depreciation. <a href="/expert-insights/investing/claiming-depreciation-is-your-key-to-increasing-cash-flow-on-commercial-properties">Commercial property investors are also able to use depreciation. </a>
Want more? Here’s what to read next
<a href="/expert-insights/finance/your-guide-to-property-depreciation">Your guide to property depreciation</a>
How to: Check your depreciation entitlements
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What is ‘depreciation’ and how can it help me? Investment terms explained

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No doubt as property investors you’re currently preparing your tax return now that the financial year has come to a close.
It is the perfect time to consider a depreciation schedule and how it works into your cash flow.
While, increasingly, savvy investors are aware of depreciation and the benefits of it, many have still not attained the highest level of savings property, explains BMT Tax Depreciation managing director Brad Beer.
“The average tax depreciation schedule saves an investor $10,100 in the first full financial year and $73,500 over 10 years of ownership, however recent research we conducted revealed that 80% of property investors may not be maximising the depreciation deductions available to them,” said Beer.
“With so many new property investors in the market, it’s as important as ever for Australians to familiarise themselves with tax depreciation schedules.”
Essentially, as buildings and its fixtures get older they decrease in value and they wear out. Tax depreciation schedules allow you to claim for this.
“Specialist quantity surveyors are able to make a comprehensive assessment of all the depreciable assets, not just the more frequently-claimed items such as carpet, hot water systems and light fittings,” he said.
“Less obvious items such as garbage bins, mechanical exhausts and door closers may seem insignificant by themselves, however cumulatively can make a significant difference to the cash flow generated by an investment property.”
Two years of “back claiming” can also be organized if investors haven’t yet claimed since purchase.
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How to use depreciation to assist your cash flow: BMT

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With the end of the financial year on our doorstep, tax deductions are on everyone’s mind.
If you own an investment property, depreciation is one of the major tax deductions available to you. As your property wears out, you can claim that loss against your taxable income.
Depreciation claims change the amount of tax property investors need to pay on their income. So if your income tax rate is 37 cents to the dollar, and you make a $10,000 deduction on your investment property, you can get $3,700 cash back at the end of the financial year.
Although all property investors hope that their property will increase in value over time, depreciation refers to the physical condition of the materials on that property.
Brad Beer, managing director of BMT Tax Depreciation, explains that depreciation can be applied to any investment property that’s being used for income producing purposes.
“The only thing that’s excluded really is your principal place of residence, because it’s not an investment property,” he says. According to Beer, around 80% of investors are not maximising their depreciation deductions.
Some people believe that depreciation can only be claimed on new properties, where the materials may degrade more quickly. However, Beer explains that this isn’t the case.
“Old property definitely still gets depreciation,” he says.  “It doesn’t get as much, it doesn’t last as long. But there is still depreciation there. We should be able to look at it, and ask a few questions about your property, to see if there are any deductions there and it’s worth going through the exercise.
“The age of the property does matter, for certain reasons, for what you’re going to be able to claim. But it’s not a ‘you get it or don’t get it’, it’s a ‘you get a bit more, or you get a bit less’ sort of situation.”
When owners renovate their investment property, there are two opportunities to claim depreciation – before the renovations, and after. Beer says that while many people recognise the need to claim depreciation on new items that they’ve installed – the new kitchen unit, or floorboards, they often forget the materials they’ve scrapped as part of their renovations.
“When you bought this property, if you were using it for rent, or for income producing purposes, you had some items in there that were helping to get that income,” says Beer.
“But if you throw them away before their life runs out, the rest of the value that’s left is potentially an instant deduction, all at once, rather than continuing to depreciate.”
The depreciation deductions available are estimated by a quantity surveyor, who prepares a depreciation schedule.
“A quantity surveyor estimates construction costs, traditionally,” says Beer.
“A tax office will accept the cost estimates of a quantity surveyor for the purpose of depreciation. We work alongside the accountant. The accountant doesn’t estimate construction costs, and therefore uses our numbers as part of the overall tax return, and we help to make sure it’s ATO compliant, and get the maximum deduction for the client.”
A quantity surveyor will visit your property and identify everything that is claimable, to maximise your deduction. As experts in depreciation, specialist quantity surveyors, are able to look the condition of a property and its items, with their costs, and assess the available deductions.
According to Beer, once a depreciation schedule is completed, another report is only necessary if  changes are made to the building.
“If you change what’s there, even if you throw away one dishwasher, and put a new dishwasher in, you’re kind of changing the depreciation a little bit,” he says.
“We don’t need to come and visit and look at one new dishwasher. But we may need to adjust the report and we can adjust your tax return.”
For investors who are unsure whether the cost of engaging a quantity surveyor is worth the available depreciation deduction, especially on older properties, Beer recommends getting an estimate from a quantity surveyor before they visit the site, using photographs, estimates of the cost of items, and previous depreciation claims.
“A quantity surveyor should be able to give you a rule of thumb pretty easily on what sort of deductions should be there,” says Beer.
“And normally they should back their work after that, and go ‘If I can’t get some deductions, you shouldn’t have to pay for the report.’”
As accountants use depreciation reports when they’re preparing your taxes, it’s important to consult them about your quantity surveyor.
“By all means, have a discussion with your accountant before you ever engage with a quantity surveyor to do your depreciation schedule,” says Beer. Your accountant may be able to recommend a quantity surveyor to you, or show you examples of reports they’ve worked with before.
For those who have forgotten to claim depreciation in the past, or who have guessed the level of claimable depreciation rather than engaging a quantity surveyor, it is possible to back date your depreciation claims – to an extent. Amendments can be made to tax returns for the past two years, if you haven’t been maximising your depreciation claims. For more information on tax claims related to your investment property, see the <a href="https://www.ato.gov.au/uploadedFiles/Content/MEI/downloads/ind00342353n17290613.pdf" target="_blank">Australian Tax Office's website</a>. 
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