As outlined in yesterday’s post “How the 2018 Budget Impacts Your Property Planning” on face value, this year’s budget has been kind to investors. Last year, changes were made to negative gearing allowances that curtailed deductions on claiming plant and equipment depreciation and deductions for travel expenses to visit your investment property.
This year, one of the changes to gearing is related to vacant land tax – if you purchase a block of land with the intent of building an investment property or multiple properties, you will not be able to claim deductions while the block remains vacant.
This will increase the holding costs for those planning on building an investment or undertaking a multi-property development.
Our partner in Property Planning and Education for over a decade and the Chairman of the peak industry body Property Investment Professionals of Australia (PIPA), Peter ‘The Property Professor’ Koulizos has been an avid small time developer and he has contributed his views on the federal budget to Smart Property Investment.