Real newbie q on depreciation

[Andrew_A]

I have an IP unit built in the early 80's. Would depreciation be applicable in this case? I think my accountant claims depreciation only on the fridge, stove etc.

:confused:

[DaleGG]

Hi

There is no easy answer to this question without more information. There may be more depreciation claimable although a lot depends upon your property.

It would appear that the building is too old to qualify for depreciation. The chattels inside the building however, may be a different story and would depend upon when the various items were bought or installed. Forexample, if the kitchen was redone 10 years ago, then, there would be depreciation claimable on that. . .

The best way to find out is talk to a Quantity Surveyor about your property and they should ask the right questions to get the right information to say yes or no.

Dale
I have an IP unit built in the early 80's. Would depreciation be applicable in this case? I think my accountant claims depreciation only on the fridge, stove etc.

:confused:

[Andrew_A]

Thanks Dale.

It seems to me that it would be much better from a -ve gearing point of view to only buy houses that were built after 1985 to let out as a rental investment.

Am I missing something here? Assuming that the difference in cost between purchasing the 1980 and the 1990 house is not so much to start with.

I have learnt how much I still don't know about property investment from these forums! Always learning I guess.

[DaleGG]

Hi

You are correct. Assuming the pricing is much the same, there is a LOT more cashflow benefit in buying the house built after 7/1985.

Cheers

Dale

Thanks Dale.

It seems to me that it would be much better from a -ve gearing point of view to only buy houses that were built after 1985 to let out as a rental investment.

Am I missing something here? Assuming that the difference in cost between purchasing the 1980 and the 1990 house is not so much to start with.

I have learnt how much I still don't know about property investment from these forums! Always learning I guess.

[geoffw]

2.5% of the building cost of a 1990 house might not be worth that much to you. I would not be buying something purely on that. (What would a house have cost then? Maybe $50K? That leaves $1,250 as a deduction- saving $600pa. You could get more back from an older house by sprucing it up, and charging a little more rent).