My friend Tyron Hyde from Washington Brown shared some of the strategies you can apply as an investor in order to play with the big boys.
In this week’s strategy, we’re going to learn how to play with the big boys – after all, if it works for them, it could work for you.
Just to recap, the Government has stopped residential property investors from claiming depreciation on plant and equipment items (that’s the ovens, dishwashers, etc.).
Now one of the main reasons they did this, is they thought property investors were over-claiming on these items.
In essence, they thought the system was broken.
However, the Government hasn’t changed the law when it comes to claiming depreciation on commercial, industrial or retail property.
Maybe there’s something in it…
So the simple tip this week is – think outside the square.
There are many types of properties you can invest in.
Own your business? Why not buy that commercial space, and rent it back to yourself.
One of my favourite pastimes is scanning the commercial and industrial property section of the Saturday papers.
Sometimes, industrial and commercial properties come with long leases and high yields – and lots of depreciation as well.
The Government didn’t want to mess with the big end of town, but who says we can’t play their game too.
Now stay tuned next week, for Strategy No. 6 – The CGT Saver.