Welcome
Hello everyone. We are keeping this edition very brief, as we have an exciting new announcement that we will be sending to you over the next week or so.........This month, we introduce Andrew Nicholls, from Nicholls Chartered Accountants as our Guest Business. NCS is a business designed to help you with your finances.
Thank you to all of those who took the time to complete our recent service offering survey. Your time, effort and reponses are very valuable to us. Indeed one of the messages we received loud and clear was that you would like US to run some property renovation seminars/workshops ...... well, scroll to the end of the newsletter as we are running our first seminar on Sunday 2nd August... you ask for it and we will deliver!
Warm regards
Rosalie
Tradesman Spotlight
A professional and experienced team of painters and decorators. Interior and Exterior works, encorporating design and textured finishes. Great prices and free quotes. Top job guaranteed using top quality paints. Fully qualified and insured.
Contact: Georgette or Radi; Office 9303 9004 Mobile 0402 652 074
They cover all areas of Melbourne
Special Offer: Paint your home in June/July and we will beat any WRITTEN QUOTE BY 10% (written quote must be supplied)
In this Issue
Property UpdateGuest Business Section - Andrew Nicholls from NCS
Urban Sensation News
DIY Tips
Speaking Engagements
Recent Project
Property Update
Guess what? The Australian economy grew by 0.4% in the last quarter!!! So what you ask? Well, this means that technically at least we are not in recession! Do not waste this opportunity, now is a fantastic time to buy, as prices are already increasing thanks to limited supply.
This month, I thought I would provide you with further insight into some property terminology. What does the median price mean? Currently the REIV median sale price for a house in Melbourne is $410,000.
The median is simply the middle price in a range of property sales. In other words, if you have a list of sold properties arranged in order from lowest price to most expensive, the median price is the centre point of that list.
Do not confuse this with average price. The average price is calculated by adding the total price from all of the sales in the list and then dividing the answer by the number of properties sold. That is a different figure altogether.
The median price is used as a measurement by REIV because it's a better representation of changes in property values than an average. It's not affected as much by a handful of very high or very low-priced sales, as an average figure would be.
When it comes to assessing a likely price for your property, the trend in the median is only one factor to consider.
The other important factor is the prices of comparable properties.
Source: REIV website, 9th June 2009
It gives me great pleasure to introduce Andrew Nicholls from NCS. Andrew is the CEO of NCS-Nicholls Chartered Accountants, a family owned practice specialising in Accounting, Taxation, Banking & Finance (Home, Investment & Business finance) as well as Strategic business advice to individuals and both large and small businesses.
Andrew has over 25 years experience in the Accounting, Business Consulting, Banking & Finance industries, having held senior executive positions at National Australia Bank, New York based consulting firm Stern Stewart & Co., and Macquarie Bank. He has undertaken many strategic assignments during his career which has extended his experience into the financial markets of the United States of America, United Kingdom, Republic of Ireland and Asia.
Rental Property Tax Deductions – Common Mistakes
Over the last few years, the Australian Taxation Office has strongly focused on taxpayers who include rental income & expenses in their tax returns. There are a number of common mistakes identified by the ATO, and the following outlines the key issues that should be understood by owners of rental properties:
• Incorrectly claiming the cost of structural improvements as repairs instead of claiming a capital works deduction. For example, remodelling a bathroom or installing a pergola is capital in nature.
• Overstating interest deductions where the loan is partly for private purposes.
• Claiming the full cost of an inspection visit when the visit is combined with private purposes (such as a holiday).
• Claiming a deduction when the rental property is not genuinely available for rent - such as a holiday house.
• Not proportioning deductions when the property was only available for rent for part of the year.
• Incorrectly claiming the cost of the land in capital works.
Many items external to the property are not deductible but are added to the cost base of the property. This may include soft landscaping, turfing, garden beds and irrigation pipe work. Landscape architect’s fees are also ineligible for a deduction.
You may be able to claim a deduction for the cost of construction of the property. This however will depend on the date the construction commenced. You require the original cost of construction for the building, and any structural improvements. You may use a cost estimate if you are unable to obtain the original construction costs from the builder and / or previous owner.
To estimate the costs you will require a quantity surveyor’s report. If you refurbish the property yourself, you are required to keep substantive documentation.
If you are unsure that you are correctly claiming your rental property deductions, we strongly suggest you seek professional taxation advice.
Andrew can be contacted on:
P: 03 9880 7744
M: 0430 015 260
E: anicholls@ncsnicholls.com.au
W: www.ncsnicholls.com.au
Important
This is not advice. The reader should not act solely on the basis of the material contained in the article. Items herein are general comments only and do not constitute or convey advice per se. Also, changes in legislation may occur quickly. We therefore recommend that formal advice be sought before acting in any of these areas. This article is issued as a helpful guide to the reader for their private information.
Andrew has over 25 years experience in the Accounting, Business Consulting, Banking & Finance industries, having held senior executive positions at National Australia Bank, New York based consulting firm Stern Stewart & Co., and Macquarie Bank. He has undertaken many strategic assignments during his career which has extended his experience into the financial markets of the United States of America, United Kingdom, Republic of Ireland and Asia.
Rental Property Tax Deductions – Common Mistakes
Over the last few years, the Australian Taxation Office has strongly focused on taxpayers who include rental income & expenses in their tax returns. There are a number of common mistakes identified by the ATO, and the following outlines the key issues that should be understood by owners of rental properties:
• Incorrectly claiming the cost of structural improvements as repairs instead of claiming a capital works deduction. For example, remodelling a bathroom or installing a pergola is capital in nature.
• Overstating interest deductions where the loan is partly for private purposes.
• Claiming the full cost of an inspection visit when the visit is combined with private purposes (such as a holiday).
• Claiming a deduction when the rental property is not genuinely available for rent - such as a holiday house.
• Not proportioning deductions when the property was only available for rent for part of the year.
• Incorrectly claiming the cost of the land in capital works.
Many items external to the property are not deductible but are added to the cost base of the property. This may include soft landscaping, turfing, garden beds and irrigation pipe work. Landscape architect’s fees are also ineligible for a deduction.
You may be able to claim a deduction for the cost of construction of the property. This however will depend on the date the construction commenced. You require the original cost of construction for the building, and any structural improvements. You may use a cost estimate if you are unable to obtain the original construction costs from the builder and / or previous owner.
To estimate the costs you will require a quantity surveyor’s report. If you refurbish the property yourself, you are required to keep substantive documentation.
If you are unsure that you are correctly claiming your rental property deductions, we strongly suggest you seek professional taxation advice.
Andrew can be contacted on:
P: 03 9880 7744
M: 0430 015 260
E: anicholls@ncsnicholls.com.au
W: www.ncsnicholls.com.au
Important
This is not advice. The reader should not act solely on the basis of the material contained in the article. Items herein are general comments only and do not constitute or convey advice per se. Also, changes in legislation may occur quickly. We therefore recommend that formal advice be sought before acting in any of these areas. This article is issued as a helpful guide to the reader for their private information.
Stay tuned for an email to your inbox over the next week or so.......
We are very excited to be bringing you a new offering very soon.
DIY tips
Well winter is upon us and it is that time of the year where we tend to spend more time in our homes. This is a perfect time to complete those small maintenance items and tidying cupboards that have been on the "to do" list for the last few months. I recently heard a great tip for these type of things - we so often procrastinate over how long they will take that we simply don't get started. So, set aside 20 minutes (set the timer if you have to....) and get started. You will be amazed at what you can achieve in this time... Repeat as necessary.....
Speaking Engagements
Come and join our free seminar - How to plan for a hassle-free renovation
When: Sunday 2nd August
Venue: Home Ideas Centre, 1686 Dandenong Rd, Oakleigh East
Time: 2pm - 3.30pm
Cost: FREE
Bookings: Are essential for catering purposes - call 9544 9611 or book online at www.homeideascentre.com.au and follow the links to the Events - Melbourne page!
Rosalie is looking forward to seeing you there.
Rosalie can speak on a range of different topics such as property design, planning, time management, products to use, ideas to save you money etc….
To book Rosalie to speak at your next property event, please call Rosalie on 0411 323 877 or email info@urbansensations.com.au
Recent US project
Updating a family home for ex-pats who were returning to Melbourne...........
What was done;
- new paint and new wallpaper throughout
- new carpet
- new laminate flooring in laundry and kitchen
- new shower screens
- new vanity units and associated tap ware
- various other general repairs and upgrades
Before After
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