ACT NOW FOR END OF FINANCIAL YEAR GAINS

17th March, 2006

Investors hoping to cash in on property-induced tax breaks need to act now to reap end-of-financial year rewards, according to Subiaco buyer's agents Property Wizards.

Director Trevor Dunkley said many real estate buyers made the mistake of leaving it too late to search for the right property to suit their financial situation. "The Christmas and New Year period can really frazzle people and by the time they've got over it and settled back in to work, they can be pushed for time to find the investment that will be the most tax effective for them," Mr Dunkley said.

"It's also crucial to remember that if you're planning to buy before the end of the financial year and prepay your interest, you will actually need to settle before June 30. "And settling quickly can be difficult as the end-of-financial year approaches because so many people wait until May or June to start looking for a property, then want it settled in June.

"At the very least it's a smart move to act now to organise your loan and talk to your advisors, and complete your purchase in March, or April at the latest."

Mr Dunkley also warned investors hoping to improve their tax position not to forget the fundamentals in the rush to gain a late tax break. "Investors still need to be savvy and think about the long term, not just jump in to beat the June 30 deadline," he said. "The prospect of a tax break can be very enticing, but buyers need to keep their wits about them.

That means keep the critical questions in mind - does the suburb have a good extended growth history, will the growth continue, will the property need maintenance and will tenants want to live there? "And importantly, get advice from your accountant, tax advisor and property experts."