Guest Blog: Brad Beer on depreciation deductions on your investment properties

By the resi financial blog team, 02 May 2014

Depreciation deductions for investments

For most investors, choosing the right investment property is a big decision. There are many factors a potential investor will usually think about prior to making a purchase. Astute investors will consider the potential rental returns, the property’s location in proximity to local services, employment drivers and the likelihood of capital growth in the foreseeable future. 
Unfortunately, one thing many investors still forget during the process of purchasing an investment property, is finding out how much depreciation they will they be able to claim. 
According to the Managing Director of BMT Tax Depreciation, Bradley Beer, 80% of investors don’t claim the deductions available from property depreciation. Property depreciation can be worth thousands of dollars in additional cash flow for the owner of the property, so it is very important to ensure no deductions are missed.
Investors who purchase both new and older properties can take advantage of depreciation. In most cases newer properties will incur a greater deduction, as the investors will be able to claim the cost of the building structure for the entire 40 years of its depreciable life.
Before purchasing any investment property, it is always advisable to contact a specialist Quantity Surveyor such as BMT Tax Depreciation. They can provide an estimate of the likely deductions available on a perspective purchase, saving you thousands in the long run.
Real deductions, real returns – new and old properties
The table below outlines real deductions found for our clients:
Investment property depreciation example
Estimate your likely deductions with the BMT Tax Depreciation Calculator from your desktop computer online or download the calculator as an app for iphone or Android phone.
To read more about depreciation, go here.
Article Provided by BMT Tax Depreciation. 
Bradley Beer (B. Con. Mgt, AAIQS, MRICS) is the Managing Director of BMT Tax Depreciation. Please contact 1300 728 726 or visit for an Australia-wide service.

Categories: BMT Tax Depreciation, Depreciation, Guest Blog