Depreciation Deductions

From: Dave M

OK, I know the answer to my question has probably already been answered numerous times within this forum, but can someone please tell me quickly ....

What are the consequences of buying a second hand (say 3 or 4 yr old) IP rather then a brand new one as far as the depreciation deductions are concerned?

ie) Will buying a new property give me a distinct neg gearing advantage over buying a 3 or 4 yr old property, or is it negligible?

Please forgive my ignorance on the matter!
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Reply: 1
From: Rixter ®

Dave, Its negligible..all you miss out on is 3-4 years buildings still got 36-37 years up your sleeve @ 2.5% of the buildings original construction cost.

Happy Investing,
Rixter :)
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Reply: 1.1
From: Peter Henery

The main "thing" with buying new or near new IPs , where the depreciation of both the building and the fittings is a significant part of "the equation" to spend the money and have a Quantity Surveyor prepare the Depreciation Schedule.

If the vendor is switched on to real estate investing he will have one for you ...but other than the "off the plan" operators most of them don't. Also don't rely on your accountant to be a deprecation/deduction expert. Educate yourself. Jan's book is good. The ATO booklet is good.
Peter H.
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