Which apartment in The Block was best for investors with depreciation?

Which apartment in The Block was best for investors with depreciation?
Which apartment in The Block was best for investors with depreciation?

Will and Karlie were the winners of this year's The Block in Port Melbourne, with their ground floor garden apartment snapped up by an investor.

However, despite finishing in last place, the penthouse apartment of Kim and Chris ranks as the best for depreciation, according to experts.

Their analysis shows the New South Wales couple's apartment showing a first year deducation of around $87,470 and a total deduction of about $2,448,042.

This money can only be claimed because the buyers of the apartment were investors. They paid $2,305,000 at the auction on Sunday night.

The apartment of the team that finished second last, Geelong best mates Andy and Ben, offered the second highest level of depreciation, with a total of $2,401,413 claimable.

Buyers qualify for deductions upwards of about $80,000 in the first year, totalling more than $2 million after 11-plus years of ownership, according to numbers crunched by BMT Quantity Surveyors.

Contestants  First year Total

Kim and Chris

$87,470 $2,448,042

Ben and Andy

$85,718 $2,401,413
Julia and Sasha $81,004 $2,230,438
Dan and Carleen $79,649 $2,187,954
Will and Karlie $77,324 $2,124,227

 

No doubt the additional cash flow property investors receive from depreciation will assist them when crunching their numbers to make purchase decisions.

BMT said some property investors did not realise the significant deductions they could claim.

“Research suggests that 80 percent of property investors fail to take full advantage of property depreciation."

To learn more about depreciation, download our handy guide from Washington Brown here.

 

Tags: 
The Block Residential Investment

Community Discussion

Be the first one to comment on this article
What would you like to say about this project?