Buying Property
Everything you need to know before and after purchasing an investment property
63 expert articles in this category, written by Koste's Chartered Quantity Surveyors.
Should I buy property in my own name, trust or company?
The right ownership structure for your investment property depends on your tax position, asset protection goals, and long-term plans — each …
Can I claim initial repairs after buying a property?
Initial repairs — fixing defects or damage that existed when you bought the property — are treated as capital expenses by the ATO, not immed…
Can I claim depreciation on a unit or apartment?
Yes — apartments and units qualify for Division 43 capital works and, in many cases, Division 40 plant and equipment depreciation, with comm…
Can I claim depreciation on a townhouse?
Yes — townhouses qualify for full tax depreciation on both the building structure and internal assets, often with strong deductions because …
Can I claim depreciation on a duplex?
Yes — a duplex qualifies for both Division 43 capital works and Division 40 plant and equipment depreciation, often generating strong deduct…
Can I claim display home depreciation?
Yes — a former display home qualifies for full plant and equipment depreciation because it was used for commercial purposes, not as a privat…
Can I claim plant and equipment if I buy from a developer?
Yes — purchasing a brand-new property directly from a developer means you can claim full plant and equipment depreciation, even if you are t…
What deductions can I claim on a brand-new investment property?
Brand-new investment properties offer the highest depreciation deductions of any property type, because you can claim both the full building…
How to Create a Passive Income Strategy with Property
A passive income strategy using property involves acquiring investment properties that generate rental income exceeding expenses. Under Divi…
What is a Property Tokenisation Investment?
Property tokenisation involves converting property ownership into digital tokens on a blockchain, allowing fractional ownership. This innova…
Understanding ATO's Audit Focus on Property CGT Claims
The ATO focuses on property CGT claims to ensure compliance with tax laws, scrutinising calculations, cost base accuracy, and exemptions. In…
How Does Foreign Ownership of Property Work in Australia?
Foreign ownership of property in Australia is regulated by the Foreign Investment Review Board (FIRB). Foreign investors must seek FIRB appr…
What is a Property Investment Co-Buying Arrangement?
A property investment co-buying arrangement involves two or more parties jointly purchasing a property, sharing ownership and responsibiliti…
What is a Residential Park and Can You Invest?
A residential park is a community where residents own or rent homes on leased land, often targeting retirees or budget-conscious buyers. Inv…
What is Auction Bidding Strategy for Investment Properties?
An effective auction bidding strategy for investment properties includes setting a clear budget, understanding market value, and employing t…
What are the Risks of Buying Interstate?
Buying property interstate in Australia involves risks such as unfamiliarity with local markets, differing legal and taxation requirements, …
What is a Caveat on a Property? An Investor's Guide
A caveat is a legal notice lodged on a property's title, alerting others of an interest in that property. It effectively prevents the sale o…
What is an Easement and How Does it Affect My Property?
An easement is a legal right for someone to use part of your property for a specific purpose. It can affect your property's value and how yo…
What is a Title Search and Why Do You Need One?
A title search is a detailed examination of public records related to a property. It verifies ownership, checks for any encumbrances, and id…
What is the Difference Between Freehold and Leasehold Property?
In Australia, freehold property means you own the land and the buildings outright, while leasehold property means you lease the land but may…
What is a Sunset Clause in an Off-the-Plan Contract?
A sunset clause in an off-the-plan contract specifies a date by which the developer must complete the project. If unmet, the contract can be…
Can I Claim Depreciation on a Build-to-Rent Property?
Yes, you can claim depreciation on build-to-rent properties in Australia. Under **Division 40** (plant and equipment) and **Division 43** (c…
How Does CGT Work for Subdivided Land in Australia?
When you subdivide land in Australia, CGT applies to each new lot as a separate asset under the ATO's rules. Your cost base includes a propo…
What is a CGT Event and When Does One Occur?
A CGT event occurs when a change happens to your ownership of a CGT asset, such as selling or gifting it. It is underpinned by Division 104 …
What is a Cooling-Off Period in Property Contracts?
A cooling-off period in property contracts allows buyers time to reconsider their purchase after signing. In most Australian states, it typi…
How to Evaluate Construction Quality When Buying Property
To evaluate construction quality when buying property, inspect structural integrity, materials, workmanship, and compliance with Australian …
Can You Negotiate a Depreciation Clause in Your Purchase Contract?
Yes, you can negotiate a depreciation clause into your purchase contract. This involves ensuring the seller provides a detailed schedule of …
What is a Pre-Purchase Depreciation Estimate?
A pre-purchase depreciation estimate provides potential investors with an overview of the likely depreciation deductions available for a pro…
What is a Rentvesting Strategy?
Rentvesting is a strategy where you rent a property to live in while owning investment properties elsewhere. This approach allows you to liv…
How the FIRB Affects Property Purchases in Australia
The Foreign Investment Review Board (FIRB) regulates foreign investments in Australian property. Foreign investors must seek approval before…
What Grants Are Available for First-Time Property Investors in Australia?
First-time property investors in Australia may not have access to specific grants like first-home buyers do, but they can benefit from schem…
What is a Vendor's Statement (Section 32)?
A Vendor's Statement, or Section 32, is a legal document provided by the seller to a potential buyer in Victoria, Australia. It includes ess…
What is a Building and Pest Inspection?
A building and pest inspection is an assessment carried out by professionals to identify structural issues, pest infestations, and other pot…
How to Assess the Capital Growth Potential of an Area
To assess the capital growth potential of an area, consider key factors like historical price trends, infrastructure developments, and demog…
Fixed vs Variable Rate Mortgage: What's Best for Investors?
A fixed rate mortgage offers a consistent interest rate over a set period, providing stability in repayments. A variable rate mortgage fluct…
How to Assess Depreciation Potential Before Buying
To assess a property's depreciation potential before buying, consider both Division 40 (plant and equipment) and Division 43 (capital works)…
What Is a Depreciation Estimate Report Before Purchase?
A depreciation estimate report before purchase provides potential investors with an overview of the tax depreciation benefits available for …
Can You Claim Borrowing Costs as a Tax Deduction?
Yes, you can claim borrowing costs as a tax deduction over the loan term or five years, whichever is shorter, under **Section 25-25 of ITAA …
How LMI Affects Your Tax Deductions
Lenders Mortgage Insurance (LMI) premiums are deductible over five years for investment properties under Australian tax law. This applies if…
What is a Buyers Agent and When Should I Use One?
A buyers agent is a licensed professional who represents the buyer in property transactions, helping to find, evaluate, and negotiate proper…
Can You Buy an Investment Property Through Your SMSF?
Yes, you can buy an investment property through your Self-Managed Super Fund (SMSF), but strict rules apply. The property must meet the sole…
How to Maximise Your Borrowing Capacity for Investment
Borrowing capacity refers to the amount a lender is willing to loan you for property investment. It's influenced by income, expenses, credit…
How Interest-Only vs Principal & Interest Loans Affect Deductions
Interest-only loans allow you to deduct the full interest paid, maximizing short-term tax benefits. Principal and interest loans reduce the …
Can I Use Equity in My Home to Buy an Investment Property?
Yes, you can use the equity in your home to buy an investment property. Equity is the difference between your home's market value and the ou…
Difference Between Construction Cost Estimate and Quantity Surveyor Report
A construction cost estimate provides a preliminary financial forecast for a project, often used in the early planning stages. A quantity su…
What is a Good Rental Yield for an Investment Property?
A good rental yield for an investment property in Australia typically ranges from 3-5% for capital city properties and 5-8% for regional are…
Should You Buy Investment Property in Your Name, a Trust, or a Company?
Choosing between buying property in your own name, a trust, or a company depends on tax implications, liability considerations, and long-ter…
What is the CGT 50% Discount and When Does It Apply?
The CGT 50% discount allows Australian individuals to reduce their capital gains tax by half if they hold an asset for over 12 months. This …
How Stamp Duty Impacts Your Property's Cost Base
Stamp duty is considered a capital cost and forms part of the cost base of your property for Capital Gains Tax (CGT) purposes. This means it…
Stamp Duty in Australia: What Is It and When Must You Pay?
Stamp duty is a state and territory tax on property transactions, calculated based on the property's value. In Australia, you typically pay …
How Does the Property Type Affect My Depreciation Claims?
The type of property you invest in—residential, commercial, or industrial—significantly impacts your depreciation claims. Residential proper…
What is Negative Gearing and How Does It Affect My Tax?
Negative gearing occurs when the cost of owning an investment property exceeds the income it generates, resulting in a tax-deductible loss. …
House vs Apartment: Which Depreciates Better for Investors?
Choosing between a house or apartment for depreciation depends on several factors, including purchase price, construction date, and property…
Essential Due Diligence Before Buying an Investment Property
Before buying an investment property, conduct thorough due diligence to ensure a sound investment. This includes evaluating the property's c…
How to Calculate ROI on an Investment Property in Australia
To calculate the return on investment (ROI) for a property, subtract annual costs from income, then divide by the total investment cost. Exp…
Do I Need a Depreciation Report Before Settlement?
Obtaining a depreciation report before settlement is not mandatory but highly beneficial for investors. It allows you to plan for tax deduct…
What Are the Upfront Costs of Buying an Investment Property?
When buying an investment property in Australia, upfront costs include the purchase price, stamp duty, loan establishment fees, legal costs,…
What Tax Deductions Can I Claim When I First Buy an Investment Property?
When you first buy an investment property in Australia, you can claim deductions for borrowing expenses, depreciation on eligible assets und…
Should You Buy New or Established Property for Tax Benefits?
New properties typically offer greater tax benefits due to higher depreciation claims under Division 40 and Division 43 of the ITAA 1997. Es…
What to Do After Buying an Investment Property
After purchasing an investment property, ensure you organise a tax depreciation schedule to maximise your deductions, review your property m…
Do I need a depreciation schedule?
You may need a depreciation schedule if you own an income-producing property and want to claim eligible depreciation deductions correctly. I…
Should I buy new or established property?
New and established properties can both have depreciation benefits, but the rules are different. New properties often provide stronger plant…
I just bought an investment property. What should I do next?
After buying an investment property, organise your records, speak with your accountant, confirm insurance, and check whether you need a tax …
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