Shining the investor spotlight on Flemington, VIC

BMT team — Mon, 05 Nov 2018 05:35:34 +0000

As Melbourne Cup fever sweeps across the country, what better time to take a closer look at the suburb of Flemington VIC and its property investment opportunities. Home to the race that stops the nation, Flemington is a trendy inner city suburb of Melbourne located just a few kilometres outside of the city centre. It has a vibrant night life and a distinct multicultural flavour, with local restaurant Laksa King topping lists as a Melbourne favourite. The property landscape in Flemington was traditionally made up of older houses, terraces and small unit blocks. However, there has been a surge of new unit developments recently such as ONLY Flemington, an ultra-modern apartment complex with 400 one and two-bedroom apartments. BMT Tax Depreciation prepared tax depreciation schedules for close to 100 investors who purchased an investment property in the ONLY complex. Based on our estimate, the average three-bedroom apartment attracted a depreciation deduction of $17,155 in the first year alone. Owners of two-bedroom apartments were able to claim an average of $14,647 in the first full financial year. Over the past two years, both residential and commercial investors in Flemington have engaged BMT to obtain tax depreciation schedules for their investment properties. Of these, 84.5 per cent of properties were units, 8.5 per cent were houses, 4.7 per cent were townhouses and 2.3 per cent were offices and retail premises. Investing in Flemington Flemington has a population just topping 7,500, with most residents being young professionals. Due to its proximity to Melbourne’s CBD, Flemington VIC is a desirable location for workers wanting to avoid a long commute to the city centre. The mix of location, demographics and culture make Flemington an attractive investment location. View Flemington’s suburb profile here. Let’s take a look at the depreciation deductions investors are entitled to based on the average purchase price of a unit and three-bedroom house in Flemington. The depreciation deductions in this scenario have been calculated using the diminishing value method. The second hand, three-bedroom house is affected by the 2017 budget changes. Based on the figures in the above table, we can see that the owner of a brand new two-bedroom unit with a purchase price of $490,000 can claim $12,764 in depreciation in the first full financial year alone. This adds up to an impressive $55,501 in the first five years of ownership. To compare, let’s look at the depreciation deductions available in a typical second hand, three-bedroom renovated house in Flemington, purchased in January 2018 with a purchase price of $1,105,000. In the first financial year, the owner can claim $6,850 in depreciation. Over the first five years, this figure increases to $34,250. Considering investors can claim depreciation deductions over the life of the property (40 years), you can see how it can dramatically improve an investor’s cash flow and why it shouldn’t be overlooked. If you have a property and aren’t already claiming depreciation, request a quote for a tax depreciation schedule today. Alternatively, if you have a depreciation schedule but want to check if you’re maximising your claim, contact the expert team at BMT Tax Depreciation on 1300 728 726. View the latest Flemington real estate here. View our previous Melbourne Cup Day related posts. The only sure money on Melbourne Cup day How to be a winner in property and beat the Melbourne Cup odds Do you dream of being a Melbourne Cup winner?

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Do you dream of being a Melbourne Cup winner?

BMT team — Tue, 01 Nov 2016 01:26:38 +0000

For many Australians Melbourne Cup Day is a day where we gather around our television sets and dream. We spend the day contemplating race colours and lucky numbers and hope that when the horses come into the final straight, we’ll have placed a bet on the winner or by chance won in the office sweeps. Few of us dare to even imagine what it might be like to be the owner of the horse who wins or what it might be like to take the winnings back to the stable. However, today we thought we’d provide you with the opportunity to dream by demonstrating some of the deductions you can claim on a horse racing stud farm. While the extra cash flow which can be earned from depreciation may not be a big as the $6.2 million in prize money on offer for the owner of today’s Melbourne Cup winning horse, there are substantial deductions horse racing stud farm owners can claim from the assets used on their properties each financial year. As you can see, if you owned a horse racing stud farm, in the first full financial year, you could claim around $44,102 from the above listed assets alone. Additional capital works deductions may also be available from fixed structural items such as stables or barns. As shown in the table above, owners are able to claim depreciation deductions for the racehorses used in the operation of their income producing business. Given this, it has become a BMT tradition in recent years to try and pick the Melbourne Cup winner based on the first year deductions which can be claimed. Below is our research based on the horses we could discover purchase prices for this year and our race day predictions. This year, Jameka is our favourite to take the winning prize.

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Shining the investor spotlight on Flemington, VIC

Do you dream of being a Melbourne Cup winner?