Improving the outdoor areas of an investment property can add great value to the property and help to attract potential tenants.
Property investors also need to be aware they can maximise depreciation deductions by claiming on the eligible items in the front yard, backyard and balconies of their rental properties.
Depreciation deductions can be claimed on these outdoor areas for both capital works deductions and plant and equipment assets
Just some of the outdoor structures which qualify for the capital works allowance include:
- Retaining walls
- Concrete slabs
- In-ground pools and above ground pools
Examples of eligible plant and equipment items include outdoor furniture, garden sheds, garden hoses, garden watering systems, solar lights, pool filters and pumps.
If you are considering improving the areas outside a rental property, take special notice when removing and replacing old assets, particularly retaining walls, garden sheds and driveways.
Investors may be entitled to claim 100 percent of the unclaimed value as a deduction and should contact a specialist Quantity Surveyor to calculate the values and construction costs of the renovation.
Detailed Case Study: Outside there’s $3,491 more in deductions to be claimed