I've been at many a dinner party discussing whether we're at the top, the bottom or somewhere in between of the property cycle. General consensus seems to be that if people knew how to track it that they'd be rich. However, in reality, human nature often makes us shy away from buying when properties fall in value and only dive back in when there's a competitive frenzy pushing the prices up!
Even though Self Managed Super Funds (SMSF's) have been allowed to borrow since 2007, Australians have only recently started to embrace the strategy. Here are 10 pointers that are essential if you're thinking of purchasing property in your SMSF.
Recently, I was lucky enough to hear Craig James, CommSec's Chief Economist, talk at a luncheon and the optimism in the room on the state of Australia’s economy was palpable.
According to Mr. James, who is without doubt one of the sharpest brains on Australia’s economy, we are in excellent shape and he offered some undeniable facts to back this up:
As we move to the end of the financial year it’s essential we’re getting the most out of our investments. If you’ve never thought about getting a depreciation schedule before, I have an offer for you that may make you reconsider.
Many people think that depreciation schedules are the home of new investments, with deductible claims being confined to 40 years over the life of the building structure and 15 years on the fittings and fixtures. Current tax legislation also states that any property built before 18th of July 1985 cannot claim the capital works allowance as a deduction.