For most investors, choosing the right property is a big decision. There are many factors a potential investor will 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.

Depreciation Deductions for your Investment Property


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 forty years of its depreciable life. Depreciation deductions for plant and equipment assets are not dependent on the properties age, so every investor can benefit.

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 above outlines real deductions found for our clients.

Property investors can estimate the likely deductions by using the BMT Tax Depreciation Calculator online by clicking here. The calculator is also available as an app for iPhone or Android phone by clicking here.


Depreciation Deductions for your Investment Property


If you would like a free estimate of the likely deductions for a property or further information, please contact your local BMT Tax Depreciation office today on 1300 728 726.

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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.