It’s known as the Great Australian Dream – the chance to live in and purchase your own home. This was a concept that was a strong theme of the 1950’s and 1960’s.
Whatever your thoughts are on that given the state of the current property market in Melbourne and Sydney there are good reasons why you would hold a high proportion of your wealth in your principle place of residence.
Having a more valuable asset now means that it will increase at a proportionally higher rate over time.
Our taxation system encourages this through one of the few exemptions available to taxpayers on capital gains. Capital Gains Tax is payable where you have a capital asset that is sold for a figure greater than its cost – typically this applies to businesses, shares and investment properties. So why doesn’t it apply to your main residence – in some parts of the world it does!
This exemption is clearly available for the benefit of homeowners and is a great incentive for you to invest greater amounts into this asset class in favour of other assets. Doing an extension to your home adds value to your overall wealth.
In the Melbourne property market, if you are applying for finance, banks will use a valuer to perform a valuation on your home. One of the factors they take into account is the accomodation that the home offers. Doing an extension to your home and adding a couple of bedrooms will help achieve a greater valuation.
Also, over time the money spent on your home extension will increase the overall value of your home at a higher rate than a property that has not been improved.
There are other incentives. State Government Land Tax does not apply to a property if it is the taxpayer’s principal place of residence. Similarly there are exemptions from including the value of your home in the calculation of many Centrelink benefits.
The downside is that even though your PPR is exempt from tax, any interest incurred on a debt incurred is not tax deductible. You should always speak to your tax professional to ensure that you maximise the tax effectiveness of assets you own and debts that you owe.
Related Tag: Second Floor Additions
“The quality of tradesmen Supa Group employ are very good. Our original home was built by a volume builder and doesn't compare to the workmanship displayed by Supa Groups tradesmen.”Steve and Anna of Pascoe Vale South
“The works commenced in November and as promised the second storey was at lock up well before Christmas.”John and Grazie of Box Hill North
“Our previous experience of builders has not been great, however we immediately experience a far more professional, friendly and reliable approach.”David and Kathryn of Wantirna
“A big Thank You for a smooth project throughout all its stages, which did not interfere with our busy household of seven.”Naso and Eva of Bulleen
“Thank you for working with us over the last year to make our dream of renovating our much loved home a reality.”Mark and Catherine of Hampton
“Wez and I were very touched by the kind thoughts and flowers we received for our family loss, we warmly thank you so very much...and this is Supa Group!!!”Wez and Pina of Rowville
“You get results that make you smile every time you come home and open the front door. You get a home that brings you joy.”Steve and Jenny of Watsonia
“The Design process was like no other we have experienced. We were excited from day one and we are still smiling from ear to ear.”Kleanthis and Emma of Oakleigh East
“Our building supervisor Braidon Marshall was absolutely fantastic. He was friendly, approachable and accessible when we had a few issues out of hours. We sprung a leak on one rather rainy night, and he came to the rescue after his birthday dinner no less!”Danny and Melissa of Coburg
“The pleasant demeanor, accommodation of questions and assistance through the process has provide us with a feeling of a priority client. ”Peter and Louise of Alphington
“What was really impressive was that the building works were completed in an incredible 6 weeks!!!!”Chris and Michelle of Camberwell
“I highly recommend anyone to consider Supa Group for an extension on their home. I am absolutely delighted we chose Supa Group to make our dreams come true!”Tony and Claire
“We are very happy in our new home and we would like to thank all the staff at supagroup.”Dale and Cristina, Port Melbourne
“Supa Group has done a great job capturing our vision with the original ideas and plans we had in mind and the result is better than we would have expected.”Con and Daniella, East Keilor
“From initial plans right through to the end Supagroup have been polite, professional and super efficient and well organised. Thanks to everyone at Supagroup for helping realise my dreams.”Claudia, West Footscray
“We have no hesitation in recommending Supa Group and we have already started in our Church community, neighbourhood and Tin's work place.”David and Tina, Gladstone Park
“We would not hesitate to recommend Supa Group to any family or friends who may consider a house extension.”George & Elizabeth, Maidstone
“The end result has exceeded my expectations. Not only is the end result stunning but also the manner in which it was achieved was exemplary. I would have no hesitation in recommending Supa Group to others considering extending their homes.. ”Jane, Blackburn
“...we were looking for a no fuss solution, which would require as little input from us as possible. We certainly found that with the Supa Group. We found you professional and timely right throughout the building phase.”Peter and Rose, Taylors Lakes
“My family and I would like to thank you for your excellent quality of work done on our second level extension. It's been an exciting six months watching our house turn into the home we were hoping for.”Tom and Vicky, Mill Park
“We have found the whole experience of a new extension something interesting and exciting and are delighted to recommend Supagroup to our friends and neighbours.”Tim and Kathy, Beaconsfield
“Every day we look around and are amazed at what has been achieved. ...our journey with Supa Group has been amazing to say the least. ”Damian and Anthea
“We would not hesitate in recommending Supa Group to others that are thinking of renovating or extending.”Maria and Vince