Cash Flow Case Studies

Tax depreciation banner

Depreciation: an investor profile

An investor has purchased a property for $420,000 and is receiving $490 per week in rent for a total income of $25,480 per annum. The estimated expenses for the property include interest, rates and management fees, which total $32,000 per annum. The following scenario shows the investor’s cash flow with and without depreciation. A typical $420,000 unit will depreciate by around $11,500 in the first full financial year.

Sample table of tax depreciation

In this example the investor uses property depreciation to go from a negative cash flow scenario, paying out $79 per week, to a positive cash flow scenario, earning $3 per week on the property. By claiming depreciation this investor will save $4,255 for the year.

Request a Quote

Harcourts Complete logo

Our approach to customer service is more attentive than ever. We know buying, selling or renting a home can be overwhelming. Harcourts Complete provides services you will need before, during and after the move. Our Complete has done the legwork for you.

INSURANCE
Keeping you covered wherever you are

MOVING
Connections, gas and utilities

FINANCE
Speak to our mortgage experts

TAX DEPRECIATION
Get the most out of your property investment

FOREIGN EXCHANGE
Currency exchange with zero fees

SMOKE ALARM
Smoke alarm maintenance and compliance