Hi all,
this is probably been discussed in the past so apologies if I'm rehasing the same old content. I think I have a decent understanding of depreciation and how that works, i.e. 2.5% for 40 years for properties post 1987.
My question is more around whether people can recommend a simple set of guidelines for initial depreciation calculation to assist in cash flow assessment.
I think the best time (and please correct me if I'm wrong) to get a formal QS in to assess a property is either just before you're ready to buy or just after you've bought. However, deductions can make a big difference to whether a property is capable of providing a positive or slightly negative cash flow (as opposed to highly negative)
At the moment I can think to ask a real estate agent:
year of construction
whether it's been renovated sinceIs there any other questions I should be asking? Appreciate any input here (Depreciator and others)
Thanks,
Kashe.
of course… after you bought the property.
I won't depend on the depreciation for the invesment purpose (i.e. cash flow positive or cash neutral).
Remember year 1 and 2 have the highest depreciation value… but then declined…
You want a steady CG and rental income with potential future to increase the value. The depreciation is JUST AN EXTRA BENEFITStop listening to the property spruiker or wealth creation group that just concentrate on the depreciation value
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