The houses on Channel Nine’s the reality TV show The Block are set to go under the hammer, but will the renovated properties represent a sound property investment?
According to BMT Tax Depreciation, the four properties were purchased for an average of $950,000 each, and over $700,000 per property has been spent in additional works. They are expected to fetch $1.1-1.2m each at auction, and BMT has identified The Block as a potential property investment goldmine.
“If an investor is to purchase one of these properties for the anticipated $1.1 to 1.2 million, they represent great value based on the overall expenditure,” said BMT director Bradley Beer.
He added that an investor could claim over $30,000 in deductions during the first full year, and a cumulative total of $140,000 in the first five years of ownership – but explained that thousands of dollars’ worth of legitimate depreciation tax breaks are often overlooked by property investors.
“Research shows that 80% of property investors are failing to take full advantage of property depreciation, and are missing out on thousands of dollars in their pockets,” said Beer.
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