Belmont Beauty Delivers Bountiful Depreciation Rewards
Continuing the trend of investing in newly built homes in the suburbs, our client purchased a contemporary low set home in Belmont, one of Geelong’s oldest, largest and most popular suburbs in Victoria.
Our Property Tax team inspected the property to assess the Building and Plant & Equipment items to prepare a tax depreciation schedule.
This free-standing new property is one of two constructed on the suburban block. It contains:
- Large open plan living that opens onto alfresco areas via sliding doors
- Practical kitchen with stone benchtops and European appliances
- Master bedroom with ensuite and walk-in robe
- Two additional large bedrooms with large built-in robes
- Designer family bathroom
- Heating/cooling air conditioning
- Security system
- Double lock-up garage with remote roller door and internal access
- Landscaping includes planted lawns and mulched garden beds
- Fully insulated with a six star energy rating
Once our analysis was complete, we found a total of $11,385 in depreciation deductions claimable as allowances under Division 43 and Division 40, for the first full financial year.
Typical depreciation deductions included:
- Air conditioning / ceiling fans
- Hot water
- Kitchen equipment (dishwasher, oven, exhaust, range hood, stove)
- Security system
Furthermore, we calculated a total of $332,716 in allowances that could be claimed by our client or future investors, over the next 40 years. This is a brilliant result. Savvy investors are looking to invest in new properties in older areas to take advantage of capital growth, while managing their cash flow through depreciation allowances.
With the property fully leased, our client can offset rental income by claiming depreciation allowances.