Sure, it’s pretty. No question. Her inner-city beachy location is also a big positive. But besides the prospect of rising property and house prices long-term there’s another reason why ‘The Block’ is more than just a pretty face on a reality show.
As Daniel Butkovich reveals in Domain: ‘Many investors are drawn to new properties because of the attractive depreciation schedules available.’ It’s something Jim’s Building Inspections is also keenly aware of and willing to discuss.
He continues: ‘An investor can deduct the decline in value of assets in a property that was used to generate rent, and can deduct the value of capital works over a number of years, reducing their taxable income.’
Pretty or not, it’s a big tax advantage for savvy investors. ‘Changes to depreciation last year mean that investors can now only claim the decline in value on new assets, not second-hand ones. That means new properties, such as The Block apartments, now appear a lot more attractive to investors.’
Image Source: https://www.domain.com.au/advice/its-a-huge-tax-advantage-why-wealthy-investors-love-buying-the-block-apartments-775392/