Sure, it’s pretty. No question. Her inner-city beachy location is also a big positive. But besides the prospect of rising property and house prices long-term there’s another reason why ‘The Block’ is more than just a pretty face on a reality show.
As Daniel Butkovich reveals in Domain: ‘Many investors are drawn to new properties because of the attractive depreciation schedules available.’ It’s something Jim’s Building Inspections is also keenly aware of and willing to discuss.
He continues: ‘An investor can deduct the decline in value of assets in a property that was used to generate rent, and can deduct the value of capital works over a number of years, reducing their taxable income.’
Pretty or not, it’s a big tax advantage for savvy investors. ‘Changes to depreciation last year mean that investors can now only claim the decline in value on new assets, not second-hand ones. That means new properties, such as The Block apartments, now appear a lot more attractive to investors.’
Conclusion
While the aesthetics and beachfront appeal of The Block apartments catch the eye, their real value lies beneath the surface: depreciation benefits, long-term property value growth, and strong investment appeal. For buyers and investors who understand the numbers, these homes deliver more than just good looks — they offer financial sense.
FAQs
Depreciation lets investors claim tax deductions for wear and tear on the building and fittings. New properties like The Block typically offer higher deductible amounts.
Newer builds qualify for significant capital works and plant-and-equipment deductions, reducing taxable income more effectively than older properties.
Absolutely. Premium suburbs with lifestyle appeal strengthen demand, rental return, and long-term growth.
Yes. Capital works allow deductions on structural elements over 40 years, provided the property is rented or available for rent.
Investors can no longer claim deductions on used plant-and-equipment items in second-hand properties, but new builds are unaffected.
It reveals hidden issues, supports negotiation, and gives buyers confidence—often protecting long-term value.
Ideally, at purchase and then periodically, especially when tenants change or issues appear.
Only if the property is income-producing and qualifies under depreciation rules; eligibility varies.