PROPERTY

Busting property depreciation myths

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Did you know you can still claim depreciation on 60-year-old investment properties?

According to quantity surveyor Washington Brown if you paid $700,000 for a 60-year old property you might get $6000 in deductions in the first year alone.

It's a common misconception that you can't claim property depreciation on an old building. But this is a myth that should be well and truly busted.

property depreciation

Director of Washington Brown, Tyron Hyde, says although new properties get the maximum depreciation allowance available to property investors you shouldn't discount old properties.

"Generally the minimum depreciation allowance on any property starts at around $4000 in the first year alone," says Hyde.

"To claim the building allowance the property needs to be built after September 1987. But, you can still claim depreciation on things likes carpets, ovens and blinds - regardless of the age."

To crunch the numbers yourself for an older property check out the free calculators available from Washington Brown or BMT.

Both calculators are also available as apps.

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Maria Bekiaris is editorial campaigns manager for Canstar and former deputy editor of Money. She holds a Bachelor's degree in business.
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