27 May Solar Panels add value!
Part of starting your property portfolio is learning about what makes your property attractive to renters. Clean, new property in a good location will always be sought out, but when you are buying an investment in a location full of new properties, you need to pack in as many value-adds as possible to stand out from the crowd. So, what kind of value-add can we help you integrate into your build from the get-go? Solar Panels.
Solar paneling on houses is fast becoming not only the norm but a necessity for many buyers and renters. It not only adds value to your home but the value to your tenants too, who will experience lower electricity costs, making your home worth more on the rental market.
Solar Panels are also tax-deductible on rental properties – as an investor you can claim the depreciation of a new solar system over 20 years using either the prime cost or the diminishing value method.
The effective life, according to the ATO, is 20 years – meaning an investor could claim an equal 5% per year for 20 years using the prime cost method of depreciating assets.
However, most investors use the diminishing value method which uses a rate twice that of prime cost, however you apply it to the written down value.
It is important to note that any government rebates need to be deducted from the value of the assets before applying depreciation.
Here at Property Asset Planning, our investors have the option to add solar panels to their property investment during the building process. No headaches or hassle – just another value-add that we can sort out for you.
Want to learn more? Contact us to arrange a no-obligation visit from our Managing Director, Brian, or attend one of our upcoming investment seminars!