Investors' eyes on NSW as 50% cut in stamp duty kicks in
Investment property website, 4sale4investors has seen a 15% spike in search traffic for new property in NSW since the NSW government announced plans to cut stamp duty by 50% under the NSW Housing Constuction Acceration Plan (HCAP)
From July 1, property investors looking at buying house and land packages as well as newly constructed homes (includes units, apartments, and substantially renovated homes) up to $600,000 in NSW will receive a 50% cut in stamp duty, a saving of up to $11,245.00 per property.
According to 4sale4investors, properties in Sydney's Western Suburbs, Inner West and the CBD are the key focus for investors as they look to take advantage of the program.
Think Depreciation
While the cut in stamp duty is a great incentive, investors should also look at property investments with an eye towards depreciation.
Depreciation allowances are a key factor in maximising your return on investment and achieving positive cash flow, says Tyron Hyde, Washington Brown's tax depreciation expert.
"Savvy investors will firstly look at the depreciation allowances of a property because this is where you get returns throughout the life of your investment. The cut in stamp duty is a one-off saving, where depreciation on a new property has an impact on your tax liability for up to 40 years."
Tools to help get you started
- 4sale4investors.com.au - search through NSW new property listings to suit your budget
- Tax depreciation calculator - once you've got a shortlist of properties use the FREE tax depreciation calculator to work out which prospective investment will give you the best return.
- Apply for HCAP - full details of the NSW Housing Construction Accereration Plan