Case Study Overview
The Saccharo complex at St Lucia, Brisbane feature 13 bespoke modern luxury apartments.
Name: The Saccharo
Address: Brisbane QLD
Date: 2019-04-16 00:00:00Z
The Saccharo complex at St Lucia, Brisbane feature 13 bespoke modern luxury apartments over four levels with high end appliances, quality finishes and smart technology to provide comfort for home owners or investors looking at the executive rental market.
Napier & Blakeley were involved in providing quantity surveying support for the project to minimise the financial risk for the developer, Pitman Properties. Working with our NBtax residential depreciation team our Quantity Surveyors prepared property depreciation estimates for potential buyers and property depreciation reports for property investors seeking to rent out these apartments.
Calculating Tax Depreciation
Tax depreciation allowances applicable for the Saccharo included 2.5% for the construction costs of the building, plus between 5 to 20 percent of the property’s purchase price for plant and equipment items on the property.
Some of the unique features of these apartments which have a reported life expectancy of up to 10 years by the Australian Tax Office and can be included as depreciating assets under the (Division 40) allowance include:
- Kitchen appliances, hotplates, dishwasher, microwave, ducted range hooded, freezer, coffee machines
- High quality carpet
- Free standing lights, furniture, blinds, curtains
- Air conditioning and security alarms
- Gas fireplace
- Pool, hot tub, sauna
- Carparks, storage area, ventilation systems and lifts.
Typically investors could claim up to $28,791 in depreciation allowances for Division 43 and 40 in the first year based on a two bedroom apartment with a purchase price of $699,000. This is a significant depreciation deduction for property investors which will help to offset rental income and reduce their income tax.