It's Tax Time. How Did COVID Affect your Net Worth?

It's Tax Time!

If you're like me, tax time can be one of those times of the year which can go either way.  A great refund can get you excited for a new financial year and a tax bill can get you down a little bit.  Those two feelings kind of sum up the last year in the Real Estate market.

It has been a few years of change for the Queensland Property Market.  From the initial slowdown caused by COVID in the market and the fear of property, price crashes as we came out of the first lockdowns, through to a surprising resurgence in the market with fast sales and price growth over the last six months.  The lack of properties for sale, low-interest rates, and government grants have been the biggest drivers of price growth.  The shake-up to people’s lifestyles caused by the lockdowns and restrictions has also been driving the demand from buyers seeking a more suitable home in this brave new world we now live in.

The RealWay team has ridden the property wave over the last financial year. We are seeing properties exceeding the prices paid in the 2014/2015 boom and even units are now moving quickly and for good prices.

What's In Store for us Next?

Will the prices keep going up?  Will they plateau and stay steady? Is the bubble going to burst and property prices crash?  The looming federal election for May 2022, the inevitable interest rate increases, and the banks tightening up lending will all surely have some negative impact.  On the flip side when the borders reopen and immigration & tourism ramp back up, we would expect to see some positive effects on the economy and property pricing.

So, what does it all mean for your property?    Good news or bad news...

What is your True Net Worth?

It’s hard to know where your properties sit unless you watch the market every day.  Lucky for you that's exactly what we do – every day we are appraising property, selling homes, and just giving people good honest advice.  While we don’t have a crystal ball to predict the future, we do have our finger on the pulse and can accurately price your property in the current market.

Did you Buy an Investment?

If you have bought an investment property this year, then you should make sure that you claim any depreciation that you can.  Your tax adviser will be the best place to get specific advice about your personal situation, but BMT Tax Depreciation Quantity Surveyors can prepare a depreciation schedule for your accountant to use.  For more on how to increase rental income and deductions you can Read More Here or you could talk to our property experts.

Get in Touch for Free Advice!

Why not start your new tax year by being informed about what your home is worth?  Give us a call, send us an email or a text and if you want to see how your home has weathered the storm of 2020/21, we are more than happy to help.  We work weekends and after hours, it’s never a big issue and it only takes 15 - 20 minutes to get a quick update on price.

Greg Watson CEO RealWay Australia