For Property Investors

We Don't Just Find Properties.
We Engineer After-Tax Returns.

Before you inspect a single property, we model the REAL return: rental yield minus interest, plus depreciation benefit, minus marginal tax impact. Not the brochure number. The actual number.

CPA-Modelled ReturnsDepreciation-Aware SelectionEntity Structure Advisory

The Problem With "Gross Yield"

Every property listing advertises a gross rental yield. It means almost nothing.

What the Brochure Shows

Purchase Price$750,000
Annual Rent$36,400
"Gross Yield"4.85%

This number ignores interest, tax, depreciation, strata, management fees, insurance, and vacancy.

What We Model

Gross Rent$36,400
Less: Interest (80% LVR @ 6.2%)-$37,200
Less: Management + Strata + Insurance-$9,800
Plus: Depreciation Tax Benefit (47% MTR)+$6,580
Plus: Tax Refund from Neg. Gearing+$4,982
Actual After-Tax Cash Flow+$962/yr

The real number. Modelled against YOUR marginal tax rate, YOUR loan structure, YOUR depreciation schedule.

What We Actually Do — In Detail

Each of these services is delivered by qualified professionals, not salespeople reading a script.

After-Tax Cash Flow Modeling

The number that matters is what lands in your bank account after the ATO.

We calculate your actual investment return by layering every variable that affects your hip pocket. This is not a back-of-envelope calculation — it is a line-by-line cash flow model that your CPA signs off on.

Inputs We Model

  • Your current marginal tax rate (and projected rate)
  • Loan structure: P&I vs Interest-Only, fixed vs variable
  • LVR and LMI impact on total borrowing cost
  • Rental income (adjusted for vacancy rate and seasonal variation)
  • Strata levies, council rates, water rates, insurance
  • Property management fees (typically 5.5-8.8% of gross rent)
  • Land tax liability (NSW thresholds and surcharges)

Tax Benefits We Capture

  • Division 40 (plant & equipment) depreciation deductions
  • Division 43 (capital works / building allowance) at 2.5% p.a.
  • Negative gearing tax refund (offset against salary income)
  • Borrowing cost deductions (amortised over 5 years)
  • Prepaid interest deductions (12-month prepayment strategy)
  • Travel and inspection costs (where still deductible)
  • Quantity surveyor report costs (fully deductible in year 1)

Depreciation-Aware Property Selection

Construction date changes everything. We model before you offer.

After 9 May 2017, the rules changed. Second-hand plant and equipment in established investment properties can no longer be claimed by the new owner (unless it was new when first installed). But Division 43 capital works deductions remain available for buildings constructed after 15 September 1987. This creates a significant difference in after-tax returns that most agents don't even understand, let alone model.

Example: Two Properties, Same Price, Different Returns

Property A — 1982 Brick Unit
Purchase Price$680,000
Div 43 Deduction (pre-Sep 1987)$0
Div 40 Deduction (second-hand)$0
Annual Depreciation Tax Benefit$0
Property B — 2019 Apartment
Purchase Price$680,000
Div 43 (2.5% of $420k build cost)$10,500/yr
Div 40 (new plant at purchase)$3,800/yr
Annual Depreciation Tax Benefit (47% MTR)$6,721/yr

Same price. $6,721 per year difference in your pocket. Over 10 years, that is $67,000+ in tax savings that Property A simply cannot deliver. This is why depreciation-aware selection matters.

Portfolio CGT Strategy

Selling one property to buy another? The sequence and timing changes your tax bill by tens of thousands.

Capital Gains Tax is triggered at the point of contract exchange, not settlement. That means selling on 29 June versus 2 July puts the gain in different financial years — and if your other income differs between those years, your tax bill can swing dramatically.

What We Model for Portfolio Restructures

50% CGT Discount

Available if held for 12+ months. We ensure your settlement timing preserves this discount — and alert you if early exchange could cost you 50% of the benefit.

Cost Base Additions

Stamp duty paid at purchase, legal fees, capital improvements, and borrowing costs not previously claimed all add to your cost base and reduce the taxable gain.

Timing Across FY

If your income is lower next financial year (e.g., retirement, parental leave, sabbatical), deferring the sale by weeks can save thousands in marginal tax.

Entity Structure Optimisation

Personal name, trust, company, or SMSF? The answer depends on your entire financial position.

FactorPersonalTrustCompanySMSF
Negative Gearing OffsetYesLimitedNoNo
50% CGT DiscountYesYesNo33% discount
Asset ProtectionNoneStrongStrongStrong
Income SplittingNoYesVia dividendsNo
Land Tax Threshold$100k+From $0$100k+$100k+
Setup ComplexityLowMediumMediumHigh

Note: NSW discretionary trusts lose the land tax threshold entirely (taxed from $0). This single factor can shift the optimal structure from trust to personal ownership for Sydney property. We model the complete picture — not just the tax rate.

Negative Gearing: How It Actually Works

Most investors know the term. Few understand the mechanics.

Negative gearing occurs when the cost of holding an investment property exceeds the rental income it generates. The resulting loss is offset against your other income (typically salary), reducing your taxable income and generating a tax refund. The value of this refund is directly proportional to your marginal tax rate.

Negative Gearing Value by Tax Bracket (FY2025)

$18,201 – $45,000
19% MTR
$1,900 refund on $10k loss
$45,001 – $120,000
32.5% MTR
$3,250 refund on $10k loss
$120,001 – $180,000
37% MTR
$3,700 refund on $10k loss
$180,001+
45% MTR
$4,500 refund on $10k loss

Illustrative only. Based on $10,000 net rental loss. Actual results depend on your complete income position. Medicare levy and surcharges not included.

Integrated Execution: One Team, One File

01

Local Knowledge

CPA Practice

  • Tax position assessment
  • Entity structure recommendation
  • Depreciation schedule analysis
  • After-tax cash flow model
  • Ongoing annual compliance
02

Ding Financial

Mortgage Brokerage

  • Borrowing capacity calculation
  • LVR and LMI optimisation
  • Lender selection (30+ panel)
  • Pre-approval management
  • Settlement coordination
03

Ding Real Estate

Licensed Agency

  • Depreciation-aware property search
  • ASPIRE Intelligence™ analysis
  • Market value verification
  • Offer negotiation
  • Contract to settlement management

All three entities share one client file because they are the same team. No referral gaps. No conflicting advice. No information lost between handoffs.

Frequently Asked Questions

How is this different from a buyer's agent?
A buyer's agent finds you a property. We model the financial outcome first — depreciation, CGT implications, entity structure, negative gearing benefit — and then find a property that fits the model. The property serves the strategy, not the other way around.
Do I need to be an existing CPA client?
Our advisory service is available to existing clients of Local Knowledge (our CPA practice). If you are not yet a client, we can onboard you — the tax and financial assessment is the starting point for everything we do.
What does "after-tax return" actually mean?
It means the cash return on your investment after accounting for all costs (interest, management, strata, insurance, land tax), all tax deductions (depreciation, interest, expenses), and the resulting tax refund or liability at your marginal rate. It is the only number that matters.
Can you help with interstate investment properties?
We can model the financial returns for properties in any state. However, land tax rules, stamp duty, and tenancy legislation vary by jurisdiction. We ensure your model reflects the correct state-specific costs.
What if I already own investment properties?
Existing portfolios often have unrealised optimisation opportunities — unclaimed depreciation, suboptimal loan structures, or entity restructure benefits. We assess your current portfolio and model improvements before recommending any new acquisitions.
How much does the advisory service cost?
The financial modeling and tax strategy is part of our integrated service. There are no separate advisory fees — our CPA practice, mortgage brokerage, and real estate agency each earn their respective professional fees only when you proceed.

Ready to See the Real Numbers?

Book your Investment Strategy Review. We will model the after-tax return for your situation before you look at a single property.