Adding value to clients, especially likely repeat customers, is essential to running an attraction business, according to BMT Tax Depreciation’s managing director Brad Beer.
But BMT’s research has shown that 80 per cent of investors aren’t aware of the savings available to them.
“Real estate agents are a critical component in the property-buying process and have a fantastic opportunity, before and after a sale, to enhance their relationships with clients by broadly informing them about how tax depreciation works and the benefits it provides,” said BMT managing director, Brad Beer.
“The result would be a win-win situation for both parties as the buyer maximises his cash flow and the agent strengthens his relationship with the buyer through the process.”
Considering most investors aim to grow their property portfolio, showing clients the benefits of tax depreciation can lead to repeat business and greater referral numbers.
Tax depreciation is based on the concept that as buildings get older, items within the building wear out, or depreciate.
This depreciation can be treated as a tax deduction by any property owner obtaining income from the property, and a tax depreciation schedule can allow property owners to identify exactly how much they might claim.
A simple way property investors might learn of potential claims is through the use of a preliminary tax depreciation estimate.
“To aid investors in understanding what they might be entitled to claim, BMT offers free estimates of likely depreciation deductions for anyone interested,” Mr Beer said.