Your Investment Property forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Building your own Investment Property from Scratch

Notify me of new replies via email
Your Investment Property | 21 May 2013, 12:00 AM Agree 0
Many investors ask me what types of property I buy as an investment. Over the last few years I have bought apartments, townhouses and houses and it surprises people that I have built 2 brand new houses along the way. Why would I go to the trouble if there are so many established houses for sale? So I thought I would explain the process of building your own brand new investment property from scratch.
  • Rocket Property Group | 31 Oct 2013, 02:17 PM Agree 0
    Lindy Lear will be happy to answer your questions through this forum thread!
  • Ritchie | 05 Oct 2015, 05:00 PM Agree 0
    Please do not mislead investors saying interest paid during construction is tax deductible as its NOT. Australian Tax law only allows interest deduction from the time property is available for rent or rented whichever is earlier. There is no rental income when the house is being built which could take upto 200 working days depending upon house design, builder etc. Correct me if I am wrong?
    • Andrew | 17 Apr 2016, 12:01 AM Agree 0
      Ritchie

      Purchase costs including bank, legals and stamp duty is all tax deductible and this is before a tenant moves in. I would imagine interest during construction would be too? Its all about intent. Infact the government allows negative gearing and cash back in advance provided the "intent" and likelihood is to one day make a taxable profit.
    • Peter Nogaj | 25 Aug 2016, 08:38 PM Agree 0
      The depreciation returns, particularly in years 1-5 easily make up for mortgage repayment outgoings during construction.
  • Ritchie | 05 Oct 2015, 05:02 PM Agree 0
    Please do not mislead investors saying interest paid during construction is tax deductible as its NOT. Australian Tax law only allow interest deduction from the time property is available for rent or rented whichever is earlier. There is no rental income when the house is being built which could take upto 200 working days depending upon builder, design etc. Correct me if I am wrong?
    • PeterC | 29 Aug 2016, 03:16 PM Agree 0
      It would be tax deductible at SOME stage? ie is it added to the cost base ?
  • kayotik | 05 Nov 2015, 03:23 AM Agree 0
    Well all this law jargon stops progress i think this strategy is great but how about this for wishful thinking instead of using the banks why not use investors cashflow to create many portfolios whats the laws in that
  • nickg198 | 30 Mar 2016, 10:45 PM Agree 0
    The owner of the management rights (the manager) is required to perform common property caretaking duties usually outlined in a schedule to the agreement with the body corporate and is required to be available to assist members of the body corporate and its committee.
  • STEVE | 03 Jul 2016, 11:10 AM Agree 0
    A property is not tax deductable until it is available for rent.
  • David | 28 Aug 2016, 01:37 PM Agree 0
    I am pretty sure you can claim the interest on the land as a tax deduction during construction. Check ATO website
Post a reply