The four apartments from the hit Channel Nine show ‘The Block Fans vs Faves’ could each become lucrative purchases for property investors when they go to auction on Tuesday the 8th of April 2014.
An independent depreciation assessment of the completed properties by BMT Tax Depreciation has identified significant deductions for any property investor considering purchasing one of the four apartments.
The old Dux Theatre in Melbourne’s Albert Park was reported to have been originally purchased for $5.9 million, an average of $1.5 million per apartment. Originally a vacant shell, the property has undergone extensive renovation by the contestants including installation of both structural components as well as plant and equipment assets.
The Managing Director of BMT Tax Depreciation Bradley Beer advised if an investor was to purchase one of the properties, which are tipped to sell for between $1.9 million to $2.2 million, the properties are an underlying goldmine.
“An investor purchaser could claim a minimum of $46,281 and a maximum of $53,995 as an average first year depreciation deduction for one of the four properties,” said Bradley.
“The units will obtain the maximum depreciation potential for investors within the first five years of ownership,” said Bradley.
BMT Tax Depreciation prepares tens of thousands of property depreciation schedules each year through eleven office locations around Australia and are specialist Quantity Surveyors. Quantity Surveyors are one of the few professionals recognised by the Australian Taxation Office to have the appropriate costing skills required to estimate building costs for depreciation.
Legislation allows the owners of any income producing property to claim depreciation deductions for the wear and tear of the building structure and the assets contained within. Yet Beer says research shows that 80 per cent of property investors fail to take full advantage of property depreciation.
“Investors who don’t claim depreciation are missing out on thousands of dollars in their pockets,” said Bradley.
The finale of ‘The Block Fans vs Faves” featuring the results of the auctions will air on Channel Nine on Wednesday the 9th of April 2014.
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BMT Tax Depreciation