Expert Advice with Tyron Hyde
I was about 25 years old (a long time ago!) when I did my first property deal. I was the quantity surveyor on a project converting the Balmain RSL in Sydney into residential apartments.
I approached the developer and told him I was interested in buying an apartment. I did not have a lot of cash, so I had to go halves with a friend. We put in $1,000 each as a holding deposit to secure a one-bedroom unit, with a loft, for $220,000. It was a good start – we didn’t even need to fork out the 10% deposit.
Then the builder went broke halfway through the construction. It was a nightmare. It took another 3.5 years to finish the project. What a headache, for me as the QS and more so for the developer!
In the meantime, however, while construction was being delayed, the value of the property almost doubled. So, our $220,000 one-bedroom plus loft apartment was now worth around $400,000. We had signed a contract on the original price, which meant our $1,000 initial deposit returned quite a handsome profit for me and my friend.
I wish every deal was like that one!
Tyron Hyde is the CEO of Washington Brown and is considered one of Australia’s leading experts in property tax depreciation. He is also a registered tax agent. Washington Brown manages construction costs worth over $2 billion and completes 10,000 schedules annually. For a depreciation schedule quote CLICK HERE and follow the 3 simple steps or estimate your depreciation cost.
The Washington Brown Free Depreciation Calculator will give you an estimate of the depreciation deductions you could claim on your investment property
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Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.
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