How does depreciation work differently for say a old 3 or 4 brm home compared to a brand new 2 or 3 unit ?
It doesn’t really ‘work differently’ for homes vs units. Depending on when it was built, the building can be depreciated, as can the Assets (fixtures and fittings). If you mean which will yield more depreciation, a new unit will tend to give more than an old home. That’s a huge generalisation, but with more specifics from you I can be more specific in return.
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http://www.depreciator.com.auThanks Scott, I am trying to work out which to target, new 2 brm unit, or old 4brm house on small block, both about same price, same location ?
I wouldn’t use depreciation as something that really dictates a purchase decision. I sort of see it as icing on the cake. Yes, it can assist with affordability though. The new unit will give you more depreciation, but many people will say you’re better off with the home because you’re buying a plot of land and it’s land that appreciates.
I would tell the forum a bit more about what you’re looking at i.e. location, price, possible rent etc etc.
ScottTax Depreciation Schedules
Australia wide service
1300 660033
[email protected]
http://www.depreciator.com.au
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