The Australian property market is at an all time high as record low interest rates encourage investors to purchase an investment property.
As a result, property prices in Australia and particularly in Sydney and Melbourne are becoming harder to reach for some first time investors. But owning an investment property doesn’t have to be such an illusive goal for your clients. A number of investors are paving the way to owning their first investment property by teaming up with a friend, family member or business partner.
As Accountants, this poses a number of other questions when investors come to complete their annual income tax return as ownership structures can influence how deductions will be calculated.
Depreciation in particular is one deduction which becomes more complicated when there is more than one owner of a property.