Tax depreciation VS apartment value

[miclkcMember@miclkcJoin Date: 2009Post Count: 5]

July 17, 2009 - 4:48 am

HI Everyone,
I would like to know the tax depreciation of an apartment, will it affect the apartment value when it is going to be finance?

[Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024]

July 17, 2009 - 5:20 am

Only if the property comes with a furniture package or similar.

Basic fixtures & fittings do not normally effect the valuation.

Of course with the odd exception. If you are going to buy a property with solid gold taps they can depreciated however the property value may not be increased to allow for this.

Richard Taylor | Australia's leading private lender

[washingtonbrownParticipant@washingtonbrownJoin Date: 2006Post Count: 44]

July 17, 2009 - 5:25 am

I believe it should because i'm baised!

BUT in reality the depreciation on a property is more GUARANTEED then your rental income.

I guess banks look at the fact you need a job 1st though for the depreciation benefits to kick in.

Sigh

[jazamiteMember@jazamiteJoin Date: 2008Post Count: 34]

July 17, 2009 - 7:49 am

On an unit price of $400,000 what would an expectation be for depreciation benefit p.a.   How do they break down land component vs building vs fixtures etc

[washingtonbrownParticipant@washingtonbrownJoin Date: 2006Post Count: 44]

July 17, 2009 - 11:20 am

Hi Jazamite

Go to our website

http://www.washingtonbrown.com.au

We have a free dep calculator that will help you.

Cheers

Tyron

[jazamiteMember@jazamiteJoin Date: 2008Post Count: 34]

July 24, 2009 - 9:20 am

excellent – thanks