The Block 2015 depreciation winners are Dean and Shay
Buyers of apartments in Channel 9's The Block: Blocktagon could claim an average of over $1.5 million in depreciation deductions for each apartment after their purchase this weekend.
Dean and Shay's penthouse apartment (above) has the highest amount of depreciation deductions available, with a minimum of $62,735 that could be claimed in the first year and $1,621,688 over the specified lifetime of the property.
Luke and Ebony’s apartment at 5/1A Affleck Street as the second highest amount of total minimum depreciation deductions available at $1,600,297.
“As the property with the highest amount of total depreciation deductions available, Dean and Shaye’s apartment may prove attractive to sophisticated investors,” said Bradley Beer from BMT Tax Depreciation.
“While there are many factors that will decide which apartment achieves the highest price, the additional cash flow astute property investors receive from depreciation will assist them when crunching their numbers to make purchase decisions.
“While Dean and Shaye look to be the clear winners in terms of unlocked depreciation value - it’s a very close field,” said Bradley Beer.
Below is a summary of the depreciation estimates BMT Tax Depreciation found for all five apartments after conducting a site inspection and providing their analysis of the potential deductions investors can claim once the properties are income producing.
The South Yarra property, originally the 34 room Hotel Saville, was reportedly purchased by The Block’s production company for $6.25 million in 2014. The building has undergone an extensive renovation on the show and is home to five luxury apartments.
Legislation allows the owners of any income producing property to claim depreciation deductions for the wear and tear of the building structure and the assets contained within.