THE PROPERTY NERDS: How depreciation supercharges property investment

In this episode of The Property Nerds, co-hosts Arjun Paliwal and Adrian Lee from InvestorKit, and Jack Fouracre from Fouracre Financial, sit down with Tuan Duong from Duo Tax Quantity Surveyors to unpack the often overlooked power of depreciation in property investment.

The episode starts by unpacking depreciation and how it allows investors to claim tax deductions on the wear and tear of buildings and fixtures, boosting cash flow without out-of-pocket costs.

Since 2017, rules have tightened for second-hand residential properties, but commercial properties still allow broader depreciation claims, making them attractive for positive cash flow.

To access these benefits, investors need a depreciation schedule prepared by a qualified quantity surveyor, especially after renovations, which can unlock even more deductions through scrapping.

Tuan also debunks the myth that older properties don’t qualify, noting that renovations can revive depreciation potential. However, investors should be aware that claiming depreciation affects capital gains tax calculations upon sale.

The co-hosts believe investors should stay educated, as mastering depreciation can significantly strengthen portfolios and long-term returns.