Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

Tax Deduction

<html><body>
EXPERT OBSERVER
The recent Retail Sales Report for September has highlighted the state of demand in the Australian economy.
Real retail sales fell by 0.1% in the September quarter to be down by 0.2% over the year – the weakest result since 1991, when Australia was last in recession.
This Report is also consistent with the contraction in private domestic demand which we saw in the national accounts for the year to the June quarter.
That is despite consecutive rate cuts from the Reserve Bank in June and July and a $7.7 billion income tax cut for households (in the form of adjusting the tax offset, with a one-off lump sum payment) which started to become available from late in July.
A notable headwind to household spending is the fragility of Consumer Confidence. The Westpac MI Index of Consumer Sentiment slumped by 4.1% in July to 96.5. A rebound in August was short-lived. The latest print, for October, has the index down by 5.5% to a four year low of 92.5.
This weakness in Consumer Confidence is mirrored by weakness in Business Confidence and Conditions, which has extended throughout the September quarter, as evident in the NAB Survey.
We assess that the very low interest rates which the Reserve Bank has had to implement are now impacting confidence as consumers equate low interest rates with disturbing weakness in the economy.
The Reserve Bank has recognised that issue and is trying to balance the impact of lower rates on confidence with the benefits of lower rates through the traditional channels of lowering the AUD and boosting households’ disposable income.
A lift in spending through that second channel is being impacted by the confidence effect and the policies of some banks to adjust mortgage repayments with a lag – meaning that initially households pay down debt more rapidly rather than benefitting from improved cash flows.
We expect the RBA will persist with lower rates with one more cut to the cash rate next February. That decision may be represented as a package with additional stimulus taking the form of quantitative easing through a program of purchases of CGS; RMBS and other corporate securities and, possibly, long term funding for financial institutions.
It will be necessary to signal further stimulus through a program to maintain downward pressure on the AUD. With other central banks including the Federal Reserve; the ECB; the BOJ and the PBOC continuing to ease financial conditions the AUD will be at risk of unwelcome upward pressure if the RBA signals an end to its easing cycle.
Those monetary policies will reflect a difficult year in 2020 for the world economy as trade disputes, complemented by uncertainty around the US Presidential election, continue to impact investment and confidence.
However, as the RBA and other commentators have been highlighting, this need to boost demand also requires some support from fiscal policy.
Westpac acknowledges that there are supply constraints, particularly in Sydney and Melbourne, for new large infrastructure projects. Boosting productivity of existing infrastructure through repairs and maintenance should be considered by the authorities as well as bringing forward appropriate projects in the Commonwealth Government’s current infrastructure plans.
The Federal Government’s mid-year budget update to be released in December, the MYEFO, is also likely to include further commitments to drought relief and aged care.
We are less supportive of further business investment allowances which have been mooted for the 2020 Budget. The instant write-off threshold has already been boosted to $30,000 and extended to companies with turnover of up to $50 million, covering 3.4 million businesses, employing around 7.7 million workers.
Business investment, particularly for big business, is being held back by concerns around the global economy; weak domestic demand and, in some cases, credit availability. Boosting investment allowances is unlikely to make a marked difference to investment given these ongoing constraints.
BILL EVANS is the Chief Economist at Westpac.
This article was first published on <a href="https://westpaciq.westpac.com.au/Article/41000/14186/" target="_blank">Westpac IQ</a>.
</body></html>

bevans-rYk9SxEa4r

The Government should bring forward the personal tax cuts to boost demand in 2020: Bill Evans

<html><body>
The ATO have announced they are set to clamp down on rental deduction submissions this coming tax time.
They will more than double the number of audits on rental deductions.
The government has recently allocated additional funds to the ATO to extend its program of audits and reviews of rental properties.
More than 2.2 million Australians claimed over $47 billion in deductions in the financial year 2017-18.
In 2017–18, the ATO audited over 1,500 taxpayers with rental claims, and applied penalties totalling $1.3 million. 
Assistant commissioner Gavin Siebert says that this year the ATO has made rental deductions a top priority.
“We expect to more than double the number of in-depth audits we conduct this year to 4,500, with a specific focus on over-claimed interest, capital works claimed as repairs, incorrect apportionment of expenses for holiday homes let out to others, and omitted income from accommodation sharing,” Siebert said. 
“A random sample of returns with rental deductions found that nine out of 10 contained an error.
"We are concerned about the extent of non-compliance in this area and will be looking very closely at claims this year,” he said.
When it comes to dodgy claims, the ATO’s detection methods are becoming more advanced.
“We use a range of third party information including data from financial institutions, property transactions and rental bonds from all states and territories, and online accommodation booking platforms, in combination with sophisticated analytics to scrutinise every tax return,” Mr Siebert said.
“Where we identify claims of concern, ATO staff will investigate and prompt taxpayers to amend unjustifiable claims. If necessary, we will commence audits,” he said.
“Over-claiming robs the whole community of essential services and will not be tolerated by the Australian community.
“Once our auditors begin, they may search through even more data including utilities, tolls, social media and other online content to determine whether the taxpayer was entitled to claims they’ve made,” he said.
No penalties will apply for taxpayers who amend their return due to genuine mistakes, although deliberate attempts to over-claim can attract penalties of up to 75% of the claim.
Last year a taxpayer was penalised over $12,000 for over-claiming deductions for their holiday home when it was note made genuinely available for rent.
They blocked out the home over seasonal holiday periods.
<h2>Key issues the ATO is checking this tax time</h2>
<h3>Is loan interest being claimed correctly?</h3>
If you took out a loan to purchase a rental property, you can claim interest (or a portion of the interest) as a deduction. However, if you use some of the loan money for personal use such as paying for living expenses, buying a boat or going on a holiday, you can’t claim the interest on that part of the loan. You can only claim the part of the interest that relates to the rental property.
<h3>Do you know the difference between capital works and repairs?</h3>
Repairs or maintenance to restore something that’s broken, damaged or deteriorating are deductible immediately. Improvements or renovations are categorised as capital works and are deductible over a number of years.
Initial repairs for damage that existed when the property was purchased, such as replacing broken light fittings or repairing damaged floor boards, can’t be claimed as an immediate deduction but may be claimed over a number of years as a capital works deduction.
<h3>Do you have a holiday home?</h3>
A holiday home is different to a rental investment property. A holiday home is generally a private asset you use for family holidays, for which you cannot claim expense deductions.
However if you let your property out at ‘mates rates’ (ie below market rates to family and friends) you can claim expenses up to the amount of income you receive. If your property is genuinely available for rent – which means making it available during key holiday periods, keeping it in a condition that people would want to rent it, and not unreasonably refusing tenants – it becomes more like a rental investment property and you can claim deductions for the days it is either rented or is genuinely available.
<h3>Have you kept records?</h3>
The number one cause of the ATO disallowing a claim is taxpayers being unable to produce receipts or other documents to support a claim. Furnishing fraudulent or doctored records will attract higher penalties and may also result in prosecution.
<h3>Dealing with disasters – Damaged or destroyed property</h3>
For taxpayers whose income-generating investment properties are damaged during a natural disaster, the ATO has a range of support, advice and guidance available.
If your personal assets – such as your home or household goods – are damaged or destroyed in a disaster, there will generally be no tax consequences if you receive an insurance payout.
However, if an income-producing asset, such as an investment property, is damaged or destroyed, you’ll need to work out the correct tax treatment of insurance payouts you receive and your costs in rebuilding, repairing or replacing the assets.
The impacts of a natural disaster may affect the types of expenses you can claim and the income you need to declare for your rental property.
</body></html>

jonathanchancellor-7SQnKwU6yx

ATO to double audits scrutinising rental deductions

<html><body>
More than 2.1 million taxpayers are claiming $47.4 billion in deductions against $44.1 billion in reported income, the Australian tax commissioner Chris Jordan said in a speech in Hobart.
Looking at the scale of deductions claimed, “you can get a sense of the potential revenue at risk”, he said.
Jordan told a conference of tax agents that the ATO had been making random inquiries about tax returns.
“Our auditors have now completed over 300 audits on rental property claims and found errors in almost nine out of 10 returns reviewed,” he said.
“We’re seeing incorrect interest claims for the entire investment loan where it has been refinanced for private purposes, incorrect classification of capital works as repairs and maintenance, and taxpayers not apportioning deductions for holiday homes when they are not genuinely available for rent.”
As some 85% of taxpayers with rental properties have help with their tax returns, Jordan said agents could reduce the incorrect claims.
The ATO has made a <a href="https://www.ato.gov.au/individuals/tax-return/2018/in-detail/publications/rental-properties-2018/" target="_blank">guide for agents</a> covering how to deal with rental properties.
</body></html>

j.ballantyne1990-6AQqhLzZaK

Nine out of 10 property investors making tax claim errors: ATO

<html><body>
SPONSORED POST
Be prepared and knowledgeable about year-end tax deductions for your investment property. This checklist will help make the end of the financial year smoother.
It’s the end of financial year, which, for some means a mad scramble for paperwork. Even if you’ve been proactively monitoring your expenses and tax deductible claims, this checklist should make the year-end smoother for all property investors.
Tax deductible property expenses include:
<ul>
<li>Property management fees and expenses</li>
<li>Professional commissions and fees</li>
<li>Rental marketing expenses</li>
<li>Body corporate fees and charges</li>
<li>Council rate</li>
<li>Land tax</li>
<li>Water supply charges</li>
<li>Building, contents and public liability insurance</li>
<li>Cleaning</li>
<li>Garden and lawn maintenance</li>
</ul>
Repairs and maintenance – specifically, the cost of work undertaken to remedy defects in, damage to or deterioration of the property. Repairs include fixing electrical appliances or replacing storm damaged roofing or guttering for instance. Examples of maintenance deductions are things that will prevent future deterioration or address existing issues, such as painting the interior and exterior, or keeping the plumbing in good order. These are distinct from capital expenses (i.e. a renovation) – which would need to be depreciated.
Loan Interest expenses - incurred as a direct result of: the purchase of a rental property, the purchase of a depreciating asset for the rental property (eg. new dishwasher), cost of repairs, financing renovations for your rental premises or the acquisition of land on which to build rental accommodation.
Prepaid loan interest – you can also claim interest you’ve pre-paid up to 12 months in advance. This can be a useful way to bring a tax deduction forward into the current tax year if you have a particularly high-earning year that pushes you into the next tax bracket.
Claiming a tax deduction on loan interest
It’s important to note with regard to interest related deductions, if you use a portion of your loan for any private purpose, such as buying a new car, you cannot claim interest on that portion of the loan.
No Longer Tax Deductible: Investor Travel Perks
While the government asserted it would leave negative gearing entitlements untouched prior to this year’s federal budget announcement, they did wind back one significant tax perk: travel expense claims related to rental assets.
Whereas it used to be possible to claim travel expenses when visiting a rental property (even interstate) this is no longer the case.
This information is of general nature and should not be considered financial advice. DPN recommends you see your Accountant or Financial Advisor to understand how this information applies to your situation.
You can read the original article <a href="https://www.dpn.com.au/learn/how-to-guides/2017-tax-time-checklist-for-property-investors" target="_blank">here</a>.
For more information from <a href="https://www.dpn.com.au/" target="_blank">DPN</a>.
</body></html>

jchancellor-FAypfDUnLy

2017 Tax time checklist for property investors

<html><body>
Thinking about buying your first home because you've saved for that big deposit? Or are you contemplating instead becoming a first home investor because of the current advantages of negative gearing?
Thanks to negative gearing, buying an investment property may present a better financial proposition than buying a home to live in, particularly if you and/or your partner pay income tax at a relatively high marginal rate. 
Negative gearing involves claiming a tax deduction against your taxable income from all sources for the interest and other expenses which exceed the income from a rental real estate investment.
Owner-occupiers, which includes first-home buyers, get no such incentive.
Thus for an investment property, a rule of thumb is to consider it as a business, meaning any costs running the property can be deducted from your taxable income.
Many young, and not so young, Australians are now taking to what's been dubbed rent-vesting, a trend where buyers – typically Gen Y, purchase their first property for investment purposes rather than living in it.
According to Mortgage Choice research, around 37 percent of property investors are first home buyers, compared to just 21 percent in 2014. 
Estate agent John McGrath noted the logic: buy in affordable suburban areas, while you perhaps stay at home saving or rent in inner city locations that are out of reach but offer a better lifestyle.
It is the case in many markets of Sydney where the rent on a newly acquired investment property will not cover repayments and other costs in their entirety, so an investor will have negatively gearing, and that means tax savings.
So, what are other issues to consider? Certainly the future of negative gearing will be a big federal election issue, so pay close attention on the debate on possible changes to the scheme.
Property investment needs a long-term approach, and the real benefit will likely come from the capital growth, rather than negative gearing, but strong price growth can't be taken for granted especially after the past three years.
Beware that the lenders will be closely tabulating all your actual expenditure and income assumptions in your loan applications, so its best to check for feedback before you sign up on any property purchase.
Unless you are staying rent free or subsidised at home, much of the outcome depends upon the rent you have to pay because, as with any owner-occupied house mortgage, this is paid from after-tax income.
The higher the rent you pay, the less capacity you will have to service the cost of a negatively geared investment home, even after allowing for the tax benefit from a negative gearing loss.
No two lenders will lend you the same amount, so shop around.
And when you do sound out the emerging no go postcodes that lenders are shying away from lending.
</body></html>

Tax Deduction

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Tax Deduction

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News