Jesse and Mel's hidden advantage on The Block
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Oct 3, 2019
Jesse and Mel's hidden advantage on The Block
Jesse and Mel’s chances of winning The Block may have increased slightly after their property was shown to hold nearly $3.68 million in tax deductions for the future buyer should they decide to rent the property out.
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The Agency FacebookThe Block's Mel and Jesse.
The Block's Jesse and Mel may have found the edge they were looking for when it comes to the final auction after an assessment from BMT Tax Depreciation found their property held nearly $3.68 million in tax deductions for the future buyer.
The Australian Taxation Office allows owners of income-producing properties to claim deductions for the wear and tear that occurs as a building gets older and items within it wear out. Each property is unique and holds different depreciation benefits.
BMT CEO Bradley Beer said that while Jesse and Mel had a slight edge when it came to tax deductions, the field was very close this year.
“Smart property investors will often make note of the depreciation potential of properties and use that data to help inform the offers they make.
“While Jesse and Mel’s property holds the most total deductions, Mitch and Mark ($3.65 million) and Andy and Deb ($3.63 million) are hot on their heels.”
Source: BMT Tax Depreciation
The BMT assessment showed that Tess and Luke had the property with the lowest amount of tax deductions ($3.61 million) followed by El’ise and Matt ($3.62 million).
Jesse and Mel’s property also held the largest amount of deductions ($138,055) claimable in the first year of ownership. This again would be of interest to property investors that are looking to maximise the return from any property investment.
The average Block property contained $131,721 in first-year deductions.
Mr Beer said the challenging real estate climate meant cash flow would be a key objective for investors, of which tax depreciation plays a large role.
“Buyers looking to bid on the show and buyers in real estate markets across Australia, can make more informed decisions by understanding the depreciation values of properties and how those values will impact their cash flow,” he said.
Click here to visit the BMT Tax Depreciation website.
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