Peaceful Braybrook Attracts High Depreciation Returns for Investors in Victoria
Escaping from the city has never seems so enticing than over the past 12 months. With regional areas increasing in popularity with tenants, it’s no wonder, property owners are looking to invest in the suburbs. Our next depreciation case study focuses on a townhouse development in Braybrook, 10km west of Melbourne.
This modern property, constructed in 2020, is used as a rental property, and our client is looking to offset rental income and manage cash flow.
Our Property Tax Depreciation team was engaged to conduct a property inspection and prepare a depreciation report. On inspection, our Team found up to $15,600 in depreciation deductions for the first full year. This provided a significant tax advantage for our client in the short term. Over the next 40 years, our client can claim up to $378,600 for both the Building (Division 43) and Plant & Equipment Assets (Division 40).
Typical depreciation deductions for this property included:
- Air-conditioning
- Carpets
- Motors for garage doors
- Hot water installation
- Kitchen appliances, dishwasher, ovens, stoves, range hoods
- Washing machine, dryer
- Ventilation fans
- Fire control, smoke detectors, alarm systems
For many of our clients, claiming depreciation on free standing houses or townhouses makes good business sense. Not only do they have a property that will increase in land value but they will be able to claim further depreciation on any future capital works or the replacement of assets.
We look forward to helping more investors maximise their returns through depreciation allowances. Contact us to organise your depreciation report.