Expert Advice with Tyron Hyde - 10/10/2018
In this month’s QS Corner, I am reminded why I like property...
A builder once said to me, "You can’t make property from a plastic mould". I like the fact that property takes a while to plan and build, because, in my opinion, the demand-and-supply equation has a lot to do with the price of property.
A development across the road from where I live in Bondi was ‘in council’ for three years.
This means it took three years for all the planning approvals to be passed – before construction was even started. And it took at least another two years to build.
That’s five long years for the developers to wait before they started to see a return on their investment.
With shares, however, the company can make a capital-raising at any time or issue options to directors or employees.
This type of activity may raise much-needed funds for the company, but it also dilutes your shareholding, making your piece of the pie smaller.
In contrast, you or the government can’t just issue another house.
Tip: Next month I will be launching 52 Property Tips in 52 Weeks with Ty.
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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
Read more Expert Advice articles by Tyron
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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