In this episode, we discuss depreciation. Depreciation is when the value of the things inside your home gradually decrease in value. It's a cost to you as an investor, but you don't actually pay for it in cash. This means that you can use depreciation to decrease the amount of tax you pay to the IRD each year.
Since the 2011-2012 financial year investors have no longer been able to claim depreciation on the value of their building (if it has a useful life of 50 years or less). However, they still can claim depreciation on the chattels within the building.
Here, we discuss the different types of depreciation and what can and can't be depreciated. This is a lead up to the next episode where we talk about ringfencing.
If you want to learn more about investment property, then why not check out our guide to how to get a mortgage? It's a 9,500-word guide called the Epic Guide to Mortgages and as well as helping you get one it will also teach you how to pay it off faster.
Case Study Sunday – $150k passive income by 56 – How Adalynn and Mark plan to do it ⎜ Ep. 1725
How to buy a cheap house in an expensive suburb ⎜ Ep. 1724
First Home Grant gone – "I'm $10k worse off" ⎜ Ep. 1723
How to flip houses to make money – Tama Singh case study ⎜ Ep. 1722
"This podcast made me lazy" – BRRRR vs Build and Hold strategy ⎜ Ep. 1721
Property investor's guide to valuations ⎜ Ep. 1720
Property vs Shares – Is there a winner? ⎜ Ep. 1719
[Must Listen] Single-mum, 32 & almost mortgage-free – What do I do next? ⎜ Ep. 1718
Renting to WINZ tenants – pros and cons ⎜ Ep. #1717
Wolfbrook's $8k cash back. Is it as good as it seems? ⎜ Ep. 1716
Rapid fire – How to build a $100k passive income in 2024 ⎜ Ep. 1715
What to invest in and when – Martin Hawes ⎜ Ep. 1714
'The Block' winners share their renovation tricks – The Pearsons ⎜ Ep. 1713
Revealed: New build vs existing – Which goes up in value faster? ⎜ Ep. 1712
Case Study Sunday – How to build spec homes with Michael Wilson ⎜ Ep. 1711
Bonus - How to Build $100k Passive Income Plan Through Property - Webinar audio
How to earn more money: Pay rise vs side hustle vs boarder ⎜ Ep. 1710
Martin Hawes – 45 years of investing in 20 minutes ⎜ Ep. 1709
Are Baby Boomers about to kill the property market? ⎜ Ep. 1708
Buy a house with $0 cash – The No Cash Needed method ⎜ Ep. 1707
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