Depreciation on Furniture



From: T W

I recently attended a free seminar where the presenter talked about furnishing your properties to get higher rental yields. The presenter talked about getting $20,000 TVs for $10,000 (ie discounted) amongst other things.

I was wondering if someone did this can you claim the value of the item rather than the purchase price. In this case would the figure be 20k or 10k?


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Reply: 1
From: Sam Coster

Hi Terryw
I am a newcomer to this IP game and tend to do what feels right for me.
7mnths ago I purchased a small Studio apartment with a large closed in outside balcony.
I was advised to furnish the apartment but not spend to much on the outside as "they will not appreciate the extra expense" they being the tenants.
After six mnths of mediocre returns, I spent $1500 on matching outside furniture, a small tree, a couple of wall plants and finally a outside light.
I now have a an apartment that was returning $200-$250pw now returning $400 and it only cost me $209,000 in the first plaice.
When I first started PI I was advised, would you like it to be done for you? if the answer is yes, do it.
Enjoy the journey, its half the fun.
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