Depreciation estimates suggest which couple on The Block could prove to be a triple threat

The four townhouses from the hit Channel Nine show ‘The Block Triple Threat’ could each become lucrative purchases for property investors when they go to auction, with a tax depreciation assessment suggesting the owners will obtain the maximum depreciation potential within the first five years of ownership. 

Of the four couples, Tim and Anastasia’s townhouse is most likely to impress buyers looking at the property for investment purposes with depreciation estimates implying their property would result in the highest depreciation deductions in the first financial year as well as over the life of the property.

The original twelve units located on the

Darling Street, South

Yarra site were reported to have been purchased for $5.7 million. Since then, they have undergone extensive renovations by the contestants, who have converted the units into four triple-story townhouses.

The Managing Director of BMT Tax Depreciation Bradley Beer advised if an investor was to purchase one of the properties, which are tipped to sell for over $1,000,000, they are on an underlying goldmine.

“An investor purchaser could claim a minimum of $39,986 and a maximum of $54,163 as an average first year depreciation deduction for one of the four properties,” said Bradley Beer.

“The townhouses will obtain the maximum depreciation potential for investors within the first five years of ownership,” Bradley Beer said.

The second highest depreciation estimate which could lure potential investors to purchase was for Darren and Dee’s townhouse. Below is a summary of the depreciation estimates BMT Tax Depreciation found for all of the four properties.

Townhouse	Block contestants	First year deductions		Total deductions
		Minimum	Maximum	Minimum	Maximum
1	Josh and Charlotte	$39,986	$48,872	$951,982	$1,163,538
2	Tim and Anastasia	$44,316	$54,163	$1,137,042	$1,389,708
3	Ayden and Jess	$40,689	$49,731	$981,697	$1.199,846
4	Darren and Dee	$43,527	$53,201	$1,112,452	$1,359,666

The above depreciation estimates have been calculated using the diminishing value method of depreciation and incorporate low-value pooling for plant and equipment items. Deductions for capital works have been estimated at a depreciation rate of 2.5 per cent per year.

BMT Tax Depreciation prepares tens of thousands of property depreciation schedules each year through twelve office locations around Australia and specialist Quantity Surveyors. Quantity Surveyors are one of the few professionals recognised by the Australian Taxation Office to have the appropriate costing skills required to estimate building costs for depreciation.

Legislation allows the owners of any income producing property to claim depreciation deductions for the wear and tear of the building structure and the assets contained within. Yet Beer says research shows that 80 per cent of property investors fail to take full advantage of property depreciation.

“Investors who don’t claim depreciation are missing out on thousands of dollars in their pockets,” said Bradley Beer.

The finale of ‘The Block Triple Threat’ featuring the results of the auctions will air on Channel Nine on Wednesday the 29th of April.