Episode 010 | Tax Depreciation

It’s common to hear people saying things such as , “This property would give you heaps of depreciation benefits!” But do you know how does Tax Depreciation Schedule works when investing in property in Australia? This time on The Property Couch, Bryce Holdaway and Ben Kingsley is joined by the Managing Director of BMT Quantity Surveyors, Bradley Beer to explain what tax depreciation actually meant and how does it work.

It’s important to understand that depreciation benefits should not be the prime reason for investing in property because depreciation amount will eventually deplete. Hence, it is more important to select the right location and an investment grade asset and to regard the depreciation that follows as a additional benefit.

Brad Beer had prepared two case studies for this podcast. The first is a $600,000 – $700,000 period home with a rental income of $22,880 per annum and the second is a $400,000 – $500,000 older villa with a rental income of $21,060 per annum. For access to the Case Studies mentioned in the podcast, please click here.

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