{"id":25425,"date":"2019-05-16T01:00:20","date_gmt":"2019-05-15T15:00:20","guid":{"rendered":"https:\/\/realestatetalk.com.au\/?p=25411"},"modified":"2019-05-16T01:00:20","modified_gmt":"2019-05-15T15:00:20","slug":"common-property-depreciation-explained","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/common-property-depreciation-explained\/","title":{"rendered":"Common property depreciation explained"},"content":{"rendered":"

Shared assets in strata title lucrative for investors<\/strong><\/p>\n

A strata title is used when individuals own part of a property usually called a \u2018lot\u2019. This is generally an apartment, unit or townhouse complex which shares ownership of common property including driveways, foyers and gardens.<\/p>\n

The ownerships are combined through a legal entity called the owners corporation, commonly referred to as a body corporate. Strata title can include residential and commercial properties including units, apartments, townhouses, retail stores, retirement villages and more.<\/p>\n

Strata title accounted for 54 per cent of BMT schedules ordered in 2017\/2019, up from 49 per cent during the previous financial year.<\/p>\n

Shared assets within strata property entitle investors to substantial depreciation deductions, calculated on their percentage of ownership.<\/p>\n

BMT review the property\u2019s entitlements within the Strata Plan, Building Unit Plans and Plan of Subdivision to determine the exact percentage of ownership and capture every deduction.<\/p>\n

When determining the value of common property assets for depreciation purposes, the value is governed by the owner\u2019s interest in the asset. As a result, these assets often fall into the low-value pool or qualify for an immediate write-off. This allows Quantity Surveyors to apply accelerated depreciation rates to most assets found in common areas.<\/p>\n

The low-value pool allows investors to group qualifying assets into an accelerated depreciation pool, meaning greater deductions can be claimed sooner. In strata title, if an owner\u2019s interest in a common property asset is less than $1,000, this asset can be pooled and claimed at a rate of 18.75 per cent in the year of purchase and 37.5 per cent each year thereafter.<\/p>\n

If an owner\u2019s interest in an asset is less than $300, the asset qualifies for an immediate write-off and the full amount can be claimed in the first year.<\/p>\n

As common property assets are depreciated based on an investor\u2019s portion of ownership, more assets fall into the low-value pool or qualify for immediate write-off. This means owners can benefit from improved cash flow sooner.<\/p>\n

The below example displays a selection of common property assets the owner of a $595,000 two-bedroom, two-bathroom apartment could claim. It highlights the first and second year deductions based on the apportioned cost of the assets shown.<\/p>\n

The owner can claim $1,721 in deductions from common property assets in the first year alone. They can also claim $1,521 the following year.<\/p>\n

The gym assets in the example have an apportioned value less than $300, meaning the investor can claim the full amount in the first year. This is also the case for the air conditioning and automatic garage door motors.<\/p>\n

The owner\u2019s portion of common property carpet, hot water systems and intercom system assets have a value less than $1,000, qualifying them to be grouped in the low-value pool with accelerated depreciation.<\/p>\n

Other common property items which could be found include fire equipment, garbage bins, furniture, tiles, stairs, swimming pools, pool filters and chlorinators.<\/p>\n

As all strata title properties contain different assets and have unique ownership arrangements, it is important deductions get apportioned correctly. To ensure accuracy it\u2019s best to obtain a depreciation schedule from a specialist Quantity Surveyor.<\/p>\n

Developers can obtain a free tax depreciation estimate to inform potential buyers of the strata-title depreciation benefits. To request an estimate, visit www.bmtqs.com.au\/estimate<\/a>.<\/p>\n

 <\/p>\n

Article provided by BMT Tax Depreciation.
\nBradley Beer (B. Con. Mgt, AAIQS, MRICS, AVAA) is the Chief Executive Officer of BMT Tax Depreciation.
\nPlease contact 1300 728 726 or visit\u00a0<\/strong>www.bmtqs.com.au<\/strong><\/a> for an Australia-wide service<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Shared assets in strata title lucrative for investors A strata title is used when individuals own part of a property usually called a \u2018lot\u2019. This is generally an apartment, unit or townhouse complex which shares ownership of common property including driveways, foyers and gardens. The…<\/p>\n","protected":false},"author":176692473,"featured_media":25491,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[5,13],"tags":[70],"class_list":["post-25425","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bmt","category-latest-story","tag-featured"],"yoast_head":"\nCommon property depreciation explained - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/common-property-depreciation-explained\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Common property depreciation explained - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"Shared assets in strata title lucrative for investors A strata title is used when individuals own part of a property usually called a \u2018lot\u2019. This is generally an apartment, unit or townhouse complex which shares ownership of common property including driveways, foyers and gardens. The...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/channels.realty.com.au\/realtytalk\/common-property-depreciation-explained\/\" \/>\n<meta property=\"og:site_name\" content=\"Realty Talk\" \/>\n<meta property=\"article:published_time\" content=\"2019-05-15T15:00:20+00:00\" \/>\n<meta name=\"author\" content=\"Kevin Turner\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kevin Turner\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/common-property-depreciation-explained\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/common-property-depreciation-explained\\\/\"},\"author\":{\"name\":\"Kevin Turner\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/ae5a3b5e891767bd82ad3a068c514329\"},\"headline\":\"Common property depreciation explained\",\"datePublished\":\"2019-05-15T15:00:20+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/common-property-depreciation-explained\\\/\"},\"wordCount\":581,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/common-property-depreciation-explained\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"keywords\":[\"Featured\"],\"articleSection\":[\"BMT\",\"Latest Stories\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/common-property-depreciation-explained\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/common-property-depreciation-explained\\\/\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/common-property-depreciation-explained\\\/\",\"name\":\"Common property depreciation explained - Realty Talk\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/common-property-depreciation-explained\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/common-property-depreciation-explained\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"datePublished\":\"2019-05-15T15:00:20+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/ae5a3b5e891767bd82ad3a068c514329\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/common-property-depreciation-explained\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/common-property-depreciation-explained\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/common-property-depreciation-explained\\\/#primaryimage\",\"url\":\"\",\"contentUrl\":\"\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/common-property-depreciation-explained\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Common property depreciation explained\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\",\"name\":\"Realty Talk\",\"description\":\"Your Trusted Voice For Property Investing. Anywhere, Anytime.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/ae5a3b5e891767bd82ad3a068c514329\",\"name\":\"Kevin Turner\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/d2d83fe833d0cb22c11728d9aa25f73b319e658b72509553eff8680404d8bfa7?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/d2d83fe833d0cb22c11728d9aa25f73b319e658b72509553eff8680404d8bfa7?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/d2d83fe833d0cb22c11728d9aa25f73b319e658b72509553eff8680404d8bfa7?s=96&d=mm&r=g\",\"caption\":\"Kevin Turner\"},\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/author\\\/kevin-turner\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Common property depreciation explained - Realty Talk","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/channels.realty.com.au\/realtytalk\/common-property-depreciation-explained\/","og_locale":"en_US","og_type":"article","og_title":"Common property depreciation explained - Realty Talk","og_description":"Shared assets in strata title lucrative for investors A strata title is used when individuals own part of a property usually called a \u2018lot\u2019. This is generally an apartment, unit or townhouse complex which shares ownership of common property including driveways, foyers and gardens. The...","og_url":"https:\/\/channels.realty.com.au\/realtytalk\/common-property-depreciation-explained\/","og_site_name":"Realty Talk","article_published_time":"2019-05-15T15:00:20+00:00","author":"Kevin Turner","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Kevin Turner","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/channels.realty.com.au\/realtytalk\/common-property-depreciation-explained\/#article","isPartOf":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/common-property-depreciation-explained\/"},"author":{"name":"Kevin Turner","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/ae5a3b5e891767bd82ad3a068c514329"},"headline":"Common property depreciation explained","datePublished":"2019-05-15T15:00:20+00:00","mainEntityOfPage":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/common-property-depreciation-explained\/"},"wordCount":581,"commentCount":0,"image":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/common-property-depreciation-explained\/#primaryimage"},"thumbnailUrl":"","keywords":["Featured"],"articleSection":["BMT","Latest Stories"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/channels.realty.com.au\/realtytalk\/common-property-depreciation-explained\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/channels.realty.com.au\/realtytalk\/common-property-depreciation-explained\/","url":"https:\/\/channels.realty.com.au\/realtytalk\/common-property-depreciation-explained\/","name":"Common property depreciation explained - Realty Talk","isPartOf":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/#website"},"primaryImageOfPage":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/common-property-depreciation-explained\/#primaryimage"},"image":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/common-property-depreciation-explained\/#primaryimage"},"thumbnailUrl":"","datePublished":"2019-05-15T15:00:20+00:00","author":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/ae5a3b5e891767bd82ad3a068c514329"},"breadcrumb":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/common-property-depreciation-explained\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/channels.realty.com.au\/realtytalk\/common-property-depreciation-explained\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/channels.realty.com.au\/realtytalk\/common-property-depreciation-explained\/#primaryimage","url":"","contentUrl":""},{"@type":"BreadcrumbList","@id":"https:\/\/channels.realty.com.au\/realtytalk\/common-property-depreciation-explained\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/channels.realty.com.au\/realtytalk\/"},{"@type":"ListItem","position":2,"name":"Common property depreciation explained"}]},{"@type":"WebSite","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#website","url":"https:\/\/channels.realty.com.au\/realtytalk\/","name":"Realty Talk","description":"Your Trusted Voice For Property Investing. Anywhere, Anytime.","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/channels.realty.com.au\/realtytalk\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/ae5a3b5e891767bd82ad3a068c514329","name":"Kevin Turner","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/d2d83fe833d0cb22c11728d9aa25f73b319e658b72509553eff8680404d8bfa7?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/d2d83fe833d0cb22c11728d9aa25f73b319e658b72509553eff8680404d8bfa7?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/d2d83fe833d0cb22c11728d9aa25f73b319e658b72509553eff8680404d8bfa7?s=96&d=mm&r=g","caption":"Kevin Turner"},"url":"https:\/\/channels.realty.com.au\/realtytalk\/author\/kevin-turner\/"}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts\/25425","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/users\/176692473"}],"replies":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/comments?post=25425"}],"version-history":[{"count":0,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts\/25425\/revisions"}],"wp:attachment":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/media?parent=25425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/categories?post=25425"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/tags?post=25425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}