If you’re thinking of adding to your property portfolio before the EOFY, there are reasons to buy now and reasons why it might be wise to delay.
When investing in the Adelaide property market, it can be just as important to consider when to buy as it is what and where to buy. Purchasing an investment property before the end of the financial year can certainly bring some financial benefits, but obviously the focus should always be on buying wisely, not quickly.
Buy Now for Immediate Tax Relief
If you’ve done your research, lined up your ducks, found a suitable property and you are ready to buy, there are some green lights for moving ahead with your plans before the EOFY ticks over.
Settling on an investment property before June 30th may provide you with the tax deductions you need in the current financial year, such as a portion of the depreciation costs and interest on the loan - if the property is immediately tenanted.
You may also find yourselves in a good position to negotiate the price and achieve a quick settlement as some sellers are highly motivated to offload their investment properties before the end of the financial year.
Before Buying, Consider:
This year, because of the proposed tax changes announced in the recent Federal Budget, it may pay to revisit your investment strategy and discuss the pending regulation changes to capital gains tax and negative gearing with your financial advisor or accountant before buying.
Successful property investing is generally a long-term strategy, unless you are buying a renovation project with a quick resale in mind. But if you are building a property portfolio, the potential rental yield and long-term asset growth are more important than sneaking a few extra tax deductions into the current financial year.
As the Australian government seeks to address the housing shortage and the challenges facing first home buyers, the recent changes to CGT and negative gearing are designed to attract property investors to new builds over established properties. So be sure to explore the pros and cons of investing in new vs established properties before you make your EOFY property purchase.
The Australian Taxation Office Rental Properties Guide and the Australian Government’s 2026-2027 Federal Budget may provide you with more insight.
Of course, we have the best property management team providing excellent property management service to investors, and our expert sales partners can certainly help you find the right property to buy in Adelaide. Give us a call. We are here to take the stress out of buying, selling and investing in property.
