Units to yield rental rewards from miners

AN apartment building designed for miners is now under construction at Moranbah.

Located near the town centre, the Reed Property Group project includes 30 two-bedroom, two-bathroom apartments with air conditioning, data cabling, stainless steel appliances and a car space.

Site earthworks are nearing completion and the building is expected to be finished by July.

Just two apartments remain for sale, priced at $519,500.

Reed is also seeking a retail or commercial tenant for its ground floor space.

Sales and marketing manager Jason Kollanyi says it is a good time to invest in Moranbah, 200km southwest of Mackay, due to high rental yields.

The area services a large number of fly-in, fly-out workers from about 20 surrounding coal mines.

Mr Kollanyi said Reed was committed to using local suppliers and employing contractors living locally or based in central Queensland.

“We expect that construction of the Moranbah development will inject approximately 10 million of immediate expenditure into the local economy,” he said.

Slump feared in Canberra home market

Expectations that the Coalition will cut thousands of public service jobs if it wins power in September are starting to affect the real economy in Canberra, where property prices are falling in contrast to most other cities.

Sales transactions for houses and units in 2012 were down about 13 per cent on 2011 and more than 20 per cent below the five-year average, according to RP Data estimates.

Read the full article – AFR – Slump feared in Canberra Home Market

Are Property Investment Seminar Expenses Tax Deductible?

Here is a great article from Property Tax Specialists about the tax deductibility of property investment courses and seminars.

With the huge opportunities in the investment property market at the moment, many people attend seminars to learn more about how to invest and generally educate themselves on how to create wealth.

Attending seminars almost always involves a fee or a contribution of some sort. These can range from just covering the venue expenses, a short intensive program with materials or a long program with monthly meetings/seminars and continuous support for the long term.

The most common question I am asked regarding seminar expenses is ‘are the seminar fees are tax deductible’

Depending on your personal circumstances and marginal tax rate the tax saving from claiming the expense as a deduction can vary from $15 for every $100 spent to $46.5 per $100 spent.

Being able to claim a tax deduction means a tax saving and reducing the cost of the program, making it more affordable. In some cases it may mean the difference between being able to take it on or not, particularly where the fee is large.

So what factors determine whether the fees are tax deductible for the individual or not?

Click here to read the full article – Are Property Investment Seminar Expenses Tax Deductible


Australia’s Allure for Asian Residential Property Investment

KEY INSIGHTS IN THE YEAR OF THE SNAKE – Australia’s Allure for Asian Residential Property Investment

Property Observer report on Australia’s Allure for Asian Residential Property Investment.

Read the report – Australia’s Allure for Asian Residential Property Investment



YIP March 2013 – SMSF Tax Traps

Here’s a great article from YIP March 2013 – SMSF Tax Traps

Top 5 traps to avoid when investing through your SMSF
The tax benefits of investing through SMSFs are luring many investors to set up their own super fund. But as Eddie (hung explains, there are a number of traps for the unwary.

Investing in property through a complying self-managed superannuation fund (SMSF) can be highly tax effective. Before a member of an SMSF starts drawing an income stream from the fund, the rental income from a property owned by the fu nd net of tax-deductible expenses is taxed at the Rat concessional tax rate of15%, compared with the highest marginal tax rate including Medicare Levy of 46.5% applicable to an individual. Any capital gain derived by an SMSF on the sale ofa property if it has been held for at least 12 months is taxed at a Rat rate of10% after the CGT discount, compared with 23.25% on any discount capital gain derived by an individual.

See PDF attachment for full article – YIP March 2013 – SMSF Tax Traps

New Qld coal mine means more jobs for Aussie workers

A MASSIVE mine development near Moranbah will need hundreds of workers in the next three years, as it prepares to export coal for almost half a century.

The Eagle Downs underground project from Aquila Resources has been under construction since September 2011 but will not need the majority of its labour until next year.

When that happens, Aquila and Brazilian joint-venture partner Vale will require up to 500 workers to build plants and infrastructure on the site.

Once finished, the Perth-based firm will seek almost 400 more workers to run the mine.

Eagle Downs is projected to export an average of 4.5 million tonnes of metal-making coal per year for the first decade of mining, with the ability to hit 8 million tonnes per year after a major expansion.

It would export through the planned Dudgeon Point coal terminal near Mackay in Central Queensland.

Aquila general manager of coal Stephen Pilcher told APN industry conditions were turbulent, but it was “not a bad time to be constructing a coal mine”.

The firm was saving money by hiring workers left in the cold by other mining companies looking slash costs.

Coal prices too may prove less of a concern for Aquila with the miner able to turn a profit even if export coal prices remain stagnant.

HSBC Bank suggested this week that while China’s manufacturing levels were not growing as quickly, they were still growing, meaning demand would remain for Australian minerals.

The size and scale of Eagle Downs is comparable to the Caval Ridge project from BHP Billiton Mitsubishi Alliance – projected to mine 5.5 million tonnes of coal per year for three decades – and Anglo American’s Grosvenor mine, projected to export 6 million tonnes over 26 years.

For now, Aquila has about 40 workers on site but that would increase to 70 within the next 18 months.
After that, worker numbers will ramp up.

“The peak workforce won’t be there until 2014 or 2015,” he said.

“We’re talking 400 to 500 people at that time.

“(Once operating) it will be between 350 and 380 people, including permanent employees and contractors.”

Eagle Downs will begin exporting samples of its coal in 2015, increasing to full production from 2016.