All Topics / General Property / Expert Bust #7 – Avoid High Depreciation Props

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  • Profile photo of Jeremy SheppardJeremy Sheppard
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    @jeremydsrdata
    Join Date: 2015
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    There’s no such thing as depreciation “benefits”. Depreciation is the opposite of appreciation. Properties with the highest rates of depreciation are fighting against capital growth.

    If you can claim $10k in depreciation for a financial year and you’re paying 40c in the dollar in tax, then you’d pay $4k less tax. Nothing wrong with doing that, claim every cent you can. But don’t go chasing these types of properties because you’re not better off by $4k, you’re net position has actually deteriorated by $6k. You’re worse off by $6k compared to owning a property that didn’t depreciate at all.

    More detail is available from the full article, “Avoid Properties with high depreciation” in the Expert Busting series on the Select Residential Property website.

    • This topic was modified 2 months ago by Profile photo of Benny Benny. Reason: remove link
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