The five apartments from the hit Channel Nine show ‘The Block Glasshouse’ could each become lucrative purchases for property investors when they go to auction on the 11th of October 2014.
Opened for inspection this weekend, potential buyers will get to see first hand the massive amount of work that went in to the building of The Block Glasshouse. The 1980’s office building on High Street Prahran was reported to have been originally purchased for $8.25 million, an average of $1.65 million per apartment. The office conversion to five high end apartments, two food and drink outlets and fourteen parking spaces has undergone extensive renovation by the contestants including installation of both structural components as well as plant and equipment assets.
Tipped to sell for more than $2 million, the properties are an underlying goldmine of deductions when it comes to depreciation. Appearing on an episode of The Block Glasshouse next Wednesday the 24th of September BMT Managing Director Brad Beer outlines the potential depreciable value of assets installed for contestants Darren and Dee.
An investor purchaser could claim a minimum of $49,714 and a maximum of $62,545 as an average first year depreciation deduction for one of the five properties. The units will obtain the maximum depreciation potential for investors within the first five years of ownership.
In a recent episode Newcastle couple, Maxine and Karstan were caught on the hop when Gold Logie winner and host Scott Cam ordered an audit of all renovating costs at the request of fellow contestants. The couples tiling invoice for one of their rooms was suspiciously low, and they were asked for a please explain. Apparently they had mistakenly under paid their quick working contractor $18 an hour. For two 8 hour days that’s $288.00 that most people would notice missing in a pay packet.
In terms of depreciation, miscalculating your costs could mean you lose out on hundreds if not thousands of dollars in deductions, when all is accounted for.
Recent statistics from the ATO stating the average depreciation claimed in comparison with the depreciation deductions we find for our clients, showed that investors were still missing out on thousands of dollars in depreciation claims and that’s money from their pockets.
So, as a smart property investor make sure you don’t miss out on depreciation deductions by engaging a qualified Quantity Surveyor specialising in depreciation to prepare your property tax depreciation schedule. It could save you thousands.