Home Builder’s Bonus

 
The NSW State Government has released the 2010/11 State Budget. Stamp duty relief has been announced by way of the “Home Builder’s Bonus” for a two year period in an attempt to boost the State’s housing construction sector.

First home buyers will receive benefits of up to $29,490 and families and investors up to $22,490 in stamp duty relief if the property they acquire meets the eligibility requirements for the Home Builder’s Bonus.

Key Changes within Stamp Duty are as follows:

NSW Home Builder’s Bonus:
The NSW Home Builder’s Bonus will come into effect from 1 July 2010 for a period of up to two years until 30 June 3012. This is designed to providestamp duty relief for eligible property buyers as follows.

Pre-construction Stage
- Stamp duty will be cut to zero for off-the-plan home purchases worth up to $600,000. This represents a saving of up to $22,490.

Note that this is also available to property investors.
This will only apply prior to any construction commencing on house and land packages or new apartments.

Properties Under Construction
- Stamp duty will be cut by 25 per cent for people buying a newlyconstructed home worth up to $600,000. This represents a saving of up to $5,623.
- The 25 per cent stamp duty cut applies to home purchases made at any time during the construction period, or at completion.

First Home Buyers
- First home buyers will also be eligible for the NSW Home Builder’s Bonus meaning that including the First Home Owners Grant of $7,000, the potential maximum benefit is $29,490.

Over 65’s
- Stamp duty for people aged over 65 will be cut to zero when they sell their family home (i.e. Principal Place of Residence) to “down-size” to a newly-constructed home worth up to $600,000. This represents a
saving of up to $22,490 in stamp duty.

Home Builder’s Bonus

Property Depreciation Schedule

As mentioned previously, I said I would include my own depreciation schedule. This is for a brand new property, value of $475. You can see my total allowance in the first few years is around the $10k mark. Using a 40% tax allowance, this will give me an additional $4k cash flow, equivalent to an additional rent of $80/week which represents a 20% increase on my current rental arrangement. Certainly a useful amount.

Just remember, that whilst depreciation is useful for cashflow it does has some negative impact if you sell the property….

Property Depeciation Schedule Example

Whilst I am in tax time mode, I thought I would track down some info to make sure that I was getting all my tax benefits.  Hopefully you have a good accountant, but I have found it useful to have a good understanding of all the benefits as no-one cares more about your money than you do; I have found plenty of mistakes with my accoutants over the years.

Tax benefits are an easy thing to miss out on and it is simply money down the drain.  Get it right early and you can get your processes set up from the word go.

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he notes, “many property investors either don’t maintain an accurate depreciation schedule or have a schedule that is out-of-date.” a depreciation schedule shows depreciable [...] related posts: rhsa adds up costs for investors raine …

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A little behind on my tax return, and have been waiting on a depreciation schedule.  It is getting more mainstream now, but you absolutely would be foolish not to get out a depreciation schedule completed on your investment property.  Don’t forget that this applies to older properties as well as newer properties.  To give you an idea I will show the one I have just completed in another post, but for now here are a few links to explain the concept of a depreciation schedule in more detail….

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rental property depreciation is a highly important concept for those who own or manage rental properties. understanding how to calculate it is crucial for maximising your tax deductions and slashing your overall real estate taxes. …

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according to depreciator.com.au 80% of property investors don’t take advantage of depreciation. to claim depreciation, you need a tax depreciation schedule put together by a quantity surveyor. a tax depreciation schedule is a report on …

tax depreciation on older properties

a recent tax depreciation schedule that i prepared on an older property had over $150000 in renovations and the depreciation that the owner received was more than what some newer properties were entitled to. …

Property Depreciation Schedule