ANYONE who is considering buying an apartment in Brisbane and Perth should bring forward their plans and purchase an apartment before the period around the start of the new financial year.
DEPPRO, the property depreciation specialists, finds that there is traditionally a frenzy amongst property buyers to purchase apartments in the period leading up to and after the start of the new financial year.
Up to 70% of the property depreciation reports which our company prepares in Queensland are during the months from May to September.
Many of the depreciation reports we prepare are for property owners who purchase an apartment to maximize their tax benefits in line with the start of a new financial year.
While there are many issues concerning the depreciation entitlements on properties, in most cases, strata style homes such as new apartments provide a higher rate of depreciation than houses - all being equal.
Buying a new apartment, for example, can provide a tax payer with considerable depreciation benefits because of the significant tax benefits they offer through depreciation.
Some DEPPRO clients are discovering that tax benefits obtained through depreciation can be equivalent to 60% of the total purchase price of the property. In some cases these tax benefits can total $240,000 based on a purchase price of $400,000.
Our company is also finding that there is a strong demand for new apartments amongst property buyers in Brisbane and Perth because unlike other major capital cities where we undertake property depreciation reports, there has not been the same oversupply of apartments.
As a result, apartments in Brisbane and Perth are achieving strong capital growth rates and this factor is attracting more property buyers to purchase apartments.
RMA Project Marketing Sales Manager Geoff McDonald said the last few years has seen the South East Queensland region boom, in particular the inner Brisbane precinct.
“Off the plan unit developments RMA Project Marketing have been associated with in recent times have experienced in excess of 18.9% growth in their first year of completion,” Mr McDonald said.
“It is anticipated that Brisbane will continue to grow in the long term largely due to the States burgeoning population. Queensland experienced the largest increase in population of all States and Territories with an increase of 76,900 in 2005 making Brisbane the obvious choice for investment.”
DEPPRO is also finding that a growing number of our clients who have purchased inner city apartments in Brisbane are located in the Southern States and they have decided to purchase an apartment in the inner city area of Brisbane because they view the apartment market in Brisbane as relatively undervalued.