Something to think about.

Here’s something to think about, that you may not have heard before.

Relying primarily on depreciation when you analyse a property deal is often not a very sound strategy.

A growing number of real estate marketers promote their properties as cash flow positive by including the potential tax refunds for depreciation in their cash flow calculations.

This is especially common with brand new properties, which offer the highest depreciation write-offs.

These are not truly positive cash flow properties and are potentially quite a risky investment.

Lately, politicians are being hammered about housing affordability.

Some people are calling for the removal of the tax benefits for property investors, particularly depreciation.

Whilst nobody can predict the future with certainty, it is possible that legislative changes may reduce or even remove the benefits that property investors currently enjoy through depreciation.

Irrespective of what the politicians decide to do, the tax department has already indicated that it is targeting the depreciation claims of property investors.

Do you want to bet your financial future on this?

I claim every depreciation item I’m legally allowed to, but I don’t rely on this to achieve my positive cash flow. Would you?

Warm Regards

Hans Jakobi – Your Wealth Coach®
Real Estate Secrets