I have just settled on a property (4BR house) for 440K and have been doing some renovations to it
New paint
Floorboards to kitchen and dining
New kitchen
Some exterior work
All up this is costing my about 20K.
It should rent for about 400 per week unrenovated and 450-460 per week renovated .
Is is worthwhile doing the renovations now or after it has been tenanted. Which is a better situation for me tax wise in terms of claiming deductions ? From what I understand I can only claim these costs as capital works deductions, if at all and this deprecates at 5 percent per year . Some tradies have been offering me a cash price but I'm not sure if this is even a financially better option and if I will save anything.
Furthermore , should I obtain a new valuation after the renovation is completed or a depreciation schedule ? Would this schedule be of any use considering the only applicances I may have are new oven and cooktop etc. I assume floorboards and paint aren't a depreciable item
New paint
Floorboards to kitchen and dining
New kitchen
Some exterior work
All up this is costing my about 20K.
It should rent for about 400 per week unrenovated and 450-460 per week renovated .
Is is worthwhile doing the renovations now or after it has been tenanted. Which is a better situation for me tax wise in terms of claiming deductions ? From what I understand I can only claim these costs as capital works deductions, if at all and this deprecates at 5 percent per year . Some tradies have been offering me a cash price but I'm not sure if this is even a financially better option and if I will save anything.
Furthermore , should I obtain a new valuation after the renovation is completed or a depreciation schedule ? Would this schedule be of any use considering the only applicances I may have are new oven and cooktop etc. I assume floorboards and paint aren't a depreciable item