As a property ages, items within it wear and they depreciate in value.
The Australian Taxation Office (ATO) allows property investors to claim a deduction relating to the expenses associated with this wear and tear on the building and its fixtures – known as “depreciation”.
Depreciation can be claimed by any owner of an income producing property.
This deduction essentially reduces the investment property owner’s taxable income, thus increasing the cash flow of the property.
The property doesn’t need to be new, in fact it can be quite old and still may have a lot untapped “cash flow” value, when assessed by a good quantity surveyor.
To learn more about reducing the cost of owning an investment property and turning it into a positive cash flow property faster, please read “Increasing Cash Flow for Investors”.
https://www.mortgageaustralia.com.au/email/files/increasingcashflowforinvestors.pdf