Which property on The Block is the best investment?
A tax depreciation expert has worked out which apartment on The Block offers the best returns.
BMT Tax Depreciation has named Kim and Chris’ apartment the best bet for investors looking for a tax-effective property, News Ltd has reported. The company said the couple’s penthouse apartment would qualify for a first-year deduction of $87,470 and a total deduction of about $2,448,042.
BMT Tax Depreciation CEO Bradley Beer said the deductions could make Kim and Chris’ apartment the most attractive to investors, News Ltd said.
Read our daily recaps of The Block
Geelong lads Ben and Andy were second in BMT Tax Depreciation’s calculations, with a first-year deduction of $85,718 and a total of $2,401,413.
Early front-runners Karlie and Will could face trouble with investors on auction day, coming last in BMT’s calculations, with a $77,324 first-year deduction and a $2,124,227 lifetime deduction.
“The additional cash flow astute property investors receive from depreciation will assist them when crunching their numbers to make purchase decisions," Beer told News Ltd.
But whether the tax-effectiveness of the properties comes into play come auction time remains to be seen. Beer estimated that 80% of property investors didn't take full advantage of property depreciation deductions.
- Property pump persists: 3 million Australians plan to buy before 2022
- As lockdown tightens, what relief are banks offering for home loan customers?
- Eviction moratorium for NSW renters and $1,500 grants for landlords
- Luxe Listings Sydney star’s tips to buy in a booming property market
- AFCA approves $240m in refunds and penalties: Could you be due compensation?