In this edition: How long will it take for your prop-erty to rent? Urgent: This Last-Minute Tax Re-turn List Could Save You Thou-sands of $$$! Is The Inspector Checking On Your Pool All Cool?

June 2013

Australia’s Favourite Colour: And the Winner Is… Claiming Depreciation will Assist an Investor’s Cash-flow A Selection of Properties Recently Leased Quote Calendar of Events

Wow, winter is officially here,

time to rug up and hard to believe

this financial year is coming to an

end so quickly! Be sure to let

your property manager know of

any works you want completed

before June 30th so that you can

claim them in this financial year.

Likewise, if you need to purchase

another investment quickly just

say so and we can help you find

another great rental ASAP to add

to your portfolio, often with the

tenant in place ready to go!

The office is ticking along bril-

liantly, with Tania having settled

in well and getting to know every-

one, and today we can actually

claim that we have nothing va-

cant! This is always exciting for

us and particularly because it al-

lows us to focus on making sure

everything else is in order for

you.

All our inspections are up to date

too so you can be confident that

we are on top of things. This

month’s two main focus’s will be

finalising leases instructions for

all properties to the end of Au-

gust (so if one of your properties

has a lease expiry in that time

please make sure we know how

to proceed) and chasing up

maintenance to maximise

claimibility in this financial year

for our clients.

We hope all is well with you and

thank you for your continued sup-

port.

Wishing you wealth, health and

happiness

Christina

Financial year ending and lease expiries!

www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants

How long will it take for your property to rent? That of course depends on the time of the year so here are the latest statistics for April.

BRISBANE STATISTICS The Market

Source: rentfind.com.au

Brisbane, QLD April 2013 Annual Change

Median Weekly Rent - House $395 0.0% change

Median Weekly Rent - Unit/Apartment

$375 2.7% increase

Days on Market (Avg) 29.7 4.3 decrease

Days Vacant (Avg) 19.2 4.4 decrease

Urgent: This Last-

Minute Tax Return List

Could Save You

Thousands of $$$!

The following is a checklist of

the basics you should be

thinking about in your end-of-

financial-year planning.

*If you have a capital gain and

are considering selling another

asset that will generate a capi-

tal loss make sure you sell it

before June 30 so the loss can

be used to offset the capital

gain. If you wait until next year

the capital loss may sit in your

tax return for years before you

generate another capital gain

to offset it.

*If you’re going to make a su-

perannuation contribution do

so in plenty of time. The contri-

bution won’t count towards the

2012/13 financial year unless

it’s deposited into the fund’s

bank account before June 30.

June 30 is a Sunday this year.

*If you’re an employee con-

cerned about making the most

of the $25,000 cap on the

combination of your employ-

er’s contributions and your

salary-sacrifice consider that

your employer has until July

28 to make its nine per cent

www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants

for the June quarter so its last

contribution is in this year. If

you’re close to your cap ask

the question, make sure of the

dates and amounts.

*If you operate through a dis-

cretionary trust, including fami-

ly trusts, you must make a mi-

nute declaring how the profits

for 2013 will be distributed be-

fore June 30, 2013.

*If you need a quantity survey-

or report for a new property it’s

worth getting it done before

June 30, 2013, so that the cost

can be deducted in your

2012/13 tax return. If you wait

until you’re ready to go to your

accountant the cost won’t be

deductible until the 2013/14

financial year.

*In order to claim computers,

internet, phone, home office

expenses and your car under

the 5000-kilometre method

you need to at least have

started your travel diary before

the end of the financial year.

To download a gree spread-

sheet to help you keep these

records and a travel diary go

to bit.ly/148-14.

*To be able to claim any re-

pairs in the 2012/13 financial

year you have to at least give

the go-ahead for the work to

start before June 30.

*If your income is going to vary

next year get advice on either

delaying or accelerating your

deductions with the aim of be-

ing in the same tax bracket for

both years. Save paying inter-

est in advance for a year you

really need it.

*If you personally contributed

to superannuation in 2011/12

make sure you’ve notified your

fund if any of that contribution

has been claimed as a tax de-

duction before June 30, 2013.

Source : Australian Property Investor

(June 2013)

Is The Inspector

Checking On Your Pool

All Cool?

It has come to recent attention

that a formerly licensed pool

safety inspector, whose li-

cence was suspended by the

Pool Safety Council (PSC),

has been promoting his ser-

vices as a pool safety inspec-

tor among real estate agents

in Brisbane.

He may still have his licence

card in his possession and be

relying on it to assert that he is

validly licensed. It is not

known at this stage whether

these activities extend outside

Brisbane. This conduct is cur-

rently under investigation by

the police.

We take this opportunity to re-

mind members that the validity

of a pool safety inspector li-

cence can be conveniently

confirmed by a simple search

on the pool register.

A pool safety certificate (Form

23) is only valid if issued by a

properly licensed inspector

through the pool safety regis-

ter.

A certificate's validity can be

checked by searching the

www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants

Australia’s Favourite

Colour: And the

Winner Is…

The Dulux Colour Awards

were announced this week

and applauded the use of

bright colours and patterns

across all categories, but what

colour do most Australians

choose when painting their

homes?

According to the Dulux web-

site, our favourite colours are

cash deduction – the investor

does not need to spend mon-

ey to claim it.

“Research shows that 80% of

property investors are failing to

take advantage of property de-

preciation and are missing out

on thousands of dollars in their

pockets,” said Bradley Beer,

Managing Director of BMT Tax

Depreciation.

As a building gets older, items

wear out – they depreciate.

The Australian Taxation Office

(ATO) allows property owners

to claim this depreciation as a

deduction.

Claiming depreciation on an

investment property can make

a big difference to an in-

vestor’s cash-flow.

In order to claim these deduc-

tions, investors are encour-

aged to enlist a specialist

Quantity Surveyor to complete

a tax depreciation schedule.

Claiming Depreciation

will Assist an Investor’s

Cash-flow

Properties that generate in-

come for the owner are eligible

for significant taxation bene-

fits.

Of all the tax deductions avail-

able to property investors, de-

preciation is most often

missed because it is a non-

property's details on the regis-

ter. If a certificate has been

validly issued, this will be ap-

parent and the certificate can

be viewed by clicking on the

link 'view current certificate'.

If you have any enquiries

about this issue or any general

enquiries in relation to pool

safety, contact the PSC on

1800 340 634 or send an

email.

Source: realestatedynamics

(June 2013)

in fact, all shades of white!

‘Antique White USA’ is still

number one favourite, followed

by ‘Natural White’ and ‘Hog

Bristle’.

In fact, in their remarks on the

winning entry in the Single

Residential Interior category

(Queen St Residence by Ed-

wards Moore Projects), the

judges commented on the

“injection of personality into

the residence by … the use of

bright yellow trims, which

wash the white walls with col-

our”.

Source : Quartile Property Network

(29 March 2013)

www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants

This schedule outlines the de-

ductions available on specific

property and is used by the

investor’s Accountant when

preparing a tax return.

For one investor who had a

tax bill from the previous year,

the results were significant.

"I just wanted to let you know

that our tax bill for last year of

$2,600 became a tax cheque

of $12,000 just because of the

tax depreciation schedule!

Thank you,” said Tiana, of Be-

nowa Queensland.

Both new and old properties

have the potential to attract

significant depreciation bene-

fits for the owner to claim as a

tax credit. Property owners are

also able to go back and claim

missed deductions on previ-

ous financial year’s tax re-

turns.

For an investor experiencing

negative cash-flow on their

Pre-Tax Cash-flow

Taxation Loss

$6,520 (income - expenses)

Per Week

$125

Post-Tax Cash-flow (top tax

rate 37%)

Tax Refund

$2,412

(loss x 37.5%)

Net Cash Outlay

$4,108 (initial loss + refund)

Per Week

-$79

property, depreciation can be the key to turning their situation into

a more positive scenario.

Another investor who owns a property purchased at $420,000

with a rental income of $490 per week with a total income of

$25,480 per annum; had expenses for the property such as inter-

est, rates and management fees totalling to $32,000.

By claiming depreciation, BMT Tax Depreciation was able to turn

their negative cash-flow position into a positive one, saving them

$4,255 for the year

The following scenario shows this investor’s cash-flow with and

without depreciation.

Scenario 1 – Without a depreciation claim:

www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants

schedule before lodging their

tax return.

BMT Tax Depreciation is ac-

credited with the Australian

Institute of Quantity Surveyors

(AIQS), The Royal Institute of

Chartered Surveyors (RICS)

and The Auctioneers & Valu-

ers Association of Australia

(AVAA). BMT Tax Deprecia-

tion pride themselves on

providing prompt and profes-

sional service to their clients,

which has been mirrored in

their customer feedback.

“Your customer service, from

the first call to keeping us up-

dated on progress was excep-

tional. The report is clear and

thorough and was produced

quickly. I would highly recom-

mend your service to others,"

said Christopher and Rebecca

of Chapel Hill, Queensland.

BMT Tax Depreciation can

provide property owners a free

over the phone assessment of

available deductions. Contact

BMT Tax Depreciation on

1300 728 726 today.

Article Provided by BMT Tax Depre-

ciation.

Bradley Beer (B. Con. Mgt, AAIQS,

MRICS) is the Managing Director of

BMT Tax Depreciation. Please con-

tact 1300 728 726 or vis-

it www.bmtqs.com.au for an Austral-

ia wide service.

Pre-Tax Cash-flow

Tax Depreciation

$11,500

Cash Flow Position -

$6,520

Total Deduction

$18,020 (initial loss + depreciation)

Post-Tax Cash-flow (top tax

rate 37%)

Tax Refund

$6,667

(Total deductions x 37.5%)

Net Cash-flow

+$147 (initial loss + refund)

Per Week

+$3

Scenario 2 – Including an $11,500 depreciation claim

This investor used property depreciation to turn their negative

cash-flow position into a positive one. Without depreciation they

were paying out $79 per week. By taking advantage of tax legis-

lation and making a depreciation claim, the investor was able to

turn their loss to an income of $3 per week. In total, BMT Tax De-

preciation saved this investor a total of $4,255 in just one year

Ensuring that each depreciation claim is maximised on any build-

ing requires a combination of construction costing skills and thor-

ough knowledge of current tax depreciation legislation. For this

reason, it is recommended for investment property owners to

consult a specialist Quantity Surveyor to prepare a depreciation

10 June PUBLIC HOLIDAY 17 June Mid Month Accounting 1 July End of Month Accounting

A Selection of Properties Recently Leased

Paddington House $695p.w.

3 bed, 2 bath, 2 car accommodation

Quote

““I’ve missed more than 9000 shots in my career. I’ve lost almost 300

games. 26 times, I’ve been trusted to take the game winning shot and

missed. I’ve failed over and over and over again in my life. And that is why I

succeed.”

-- Michael Jordan

Red Hill Unit $350 p.w.

2 bed, 1 bath, 1 car accommodation

RE/MAX Profile Real Estate 141 Boundary Road TEL 07 3510 5221 FAX 07 3876 5544

www.profilerealestate.com.au Bardon QLD 4065 TEL 07 3510 5227 Helen helenbryan@remax.com.au

www.propertyrentalsbrisbane.com PO Box 388, Paddington, 4064 Chelsea profileassist@remax.com.au

Errors & Omissions: These details have been prepared by us on information we have obtained and while we trust it to be correct, is not guaranteed by us and you should rely on your own enquiries.

Kangaroo Point Apartment $420 p.w.

1 bed, 1 bath, 0 car accommodation

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