Tax experts have uncovered an insane level of tax benefits homes on The Block 2024 are in for, outstripping sales price guides dramatically.
BMT Tax Depreciation CEO Bradley Beer – whose firm has worked with The Block for two decades – estimates a range of $4.4m to $5.2m claimable in tax perks by investors which “dwarf the price guides provided by agents, starting under $2m each”.
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“Tax depreciation can significantly enhance the investment value of a property. For The Block properties, these potential tax deductions will outweigh the purchase price, offering an exceptional investment opportunity,” he said.
He believes such deductions could be a decisive factor at auction “making the properties even more attractive to savvy investors”.
Adelaide couple Kristian and Mimi Belperio’s house on The Block has total estimated deductions of between $4.878m to as much as $5.391m.
The clear winner on The Block this season – in the depreciation benefits scale that is – was Kristian and Mimi’s property, according to BMT’s calculations.
It found they had the highest total estimated deductions of between $4.878m to as much as $5.391m.
Kylie and Brad’s house was a close second estimated between $4.834m and $5.342m, a BMT statement said, and they also had “the largest average first-year claim of $176,000 compared to an average of $166,000 across all properties”.
Ricky and Haydn’s house had total estimated deductions around $4.842m to $5.352m, while Courtney and Grant’s lucky buyer was looking at $4.26m to $4.708m in tax claims.
Kristian and Mim’s guest bathroom revealed on The Block.
Maddy and Charlotte – who replaced Jesse and Paige after their dramatic exit from The Block this season – came in with the lowest estimated total tax deductions, BMT said, ranging from $4.24m to $4.685m – though still more than double estimated prices the homes could fetch.
“The new owners will also be able to depreciate their part of the communal areas,” Mr Beer said.
“Cash flow is always a key consideration for investors, and tax depreciation plays a significant role”.
“Understanding these values can help buyers make informed decisions that will maximise their returns.”
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Bradley Beer is CEO of BMT, tax depreciation specialists.
The Block 2024 is its 20th season, transforming a neglected resort in Cowes, Phillip Island, into luxury homes.
BMT said the Australian Taxation Office allows owners of income-producing properties to claim deductions for wear and tear on their properties over time, or depreciation officially, which was the figure the firm uncovered for each property.
“It is important to note that these depreciation deductions are not an indication of the house values but are based on the construction costs,” the statement said. “In the case of this gated community, the construction costs will also include a proportion of renovations and upgrades of the shared facilities like the communal pool and tennis courts attributed to each house.”
THE BLOCK 2024 BREAKDOWNS:
Kristian and Mimi:
Price guide: $1.7m-$1.85m
Depreciation value: $4.878m-$5.391m
Kylie and Brad:
Price guide: $1.7m-$1.85m
Depreciation value: $4.834m-$5.342m
Ricky and Haydn:
Price guide: $1.7m-$1.85m
Depreciation value: $4.842m-$5.352m
Courtney and Grant:
Price guide: $1.7m-$1.85m
Depreciation value: $4.26m-$4.708m
Maddy and Charlotte: (replaced Jesse and Paige)
Price guide: $1.7m-$1.85m
Depreciation value: $4.24m-$4.685m
English (US) · 