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
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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.
