Jimmy and Tam's Brighton Block house comes with largest depreciation schedule windfall for investors
Domain senior research analyst Nicola Powell says House 5 at the Blighton Block 2020 auction could have what it takes to win – given it has the largest depreciation schedule of all the houses.
“I think House 5, while it may polarise buyers because of its strong design influence from the ’50s, I think it could be the dark horse because it’s got the biggest tax depreciation schedule for any astute investor,” Dr Powell told Domain.
It was the decorating prize wins that Jimmy and Tam racked which saw them have the most money to spend on items including furniture and appliances.
Their big win was the high-end Gaggenau kitchen.
Powell says their decor which maybe a bit polarising – the fuzzy peach wall and the stark front garden – could easily be changed by buyers with different tastes.
BMT Tax Depreciation work with The Block each year to estimate depreciation deductions for the properties.
"Like the ones that came before, this season of The Block produced millions in deductions," Bradley Beer advised.
"BMT found more than a whopping $14 million dollars in estimated depreciation deductions from this year’s Block properties.
"The average total depreciation claim for each property is estimated to be almost $2.9 million."
Serial challenge winners, Jimmy and Tam, renovated the 1950’s property at 360A New Street, with BMT having estimated that the maximum total depreciation deductions available from this property would be over $3.2 million.
"In the first year alone, it is estimated that an investor could claim a maximum deduction of more than $146,000."
Fan favourites, George and Sarah, came in close second with their property fetching an estimated maximum total depreciation deduction of $3.19 million.
The major selling point for investors is that they can take advantage of the millions of dollars in depreciation deductions for forty years.
PREVIOUS BLOCK WINNERS
2003 - BONDI – Adam & Fiona, $256,000
2004 - MANLY – Jamie & Andrew, $178,000
2010 - VAUCLUSE – John & Neisha, $305,000
2011 - RICHMOND – Polly & Waz, $115,000
2012 - SOUTH MELBOURNE – Brad & Lara, $606,000
2013 - ALL STARS (BONDI) – Phil & Amity, $395,000
2013 - SKY HIGH (SOUTH MELBOURNE) – Alisa & Lysandra, $395,000
2014 - FANS v FAVES (ALBERT PARK) – Steve & Chantelle, $736,000
2014 - GLASSHOUSE (PRAHRAN) – Shannon & Simon, $435,000
2015 - TRIPLE THREAT (SOUTH YARRA) – Darren & Deanne, $935,000
2015 - THE BLOCKTAGON (SOUTH YARRA) – Dean & Shay, $755,000
2016 - THE BLOCK 2016 (PORT Melbourne) – Will & Karlie, $815,000
2017 - THE BLOCK 2017 (ELSTERNWICK) – Josh & Elyse, $547,000
2018 - THE BLOCK GATWICK (St Kilda) – Hayden & Sara, $645,000
2019 - THE BLOCK OSLO (St Kilda) – Tess & Luke, $730,000