The newly renovated apartments showcased on The Block are highly desired because of their prime locations and luxe fitouts. Of course, the apartments’ celebrity status also make them appealing to investors and owner-occupiers alike. In fact, it’s investors who are more likely to purchase the properties for several reasons. Tax advantages and evolving locations are among the reasons most investors are drawn to the The Block’s properties.
When it comes to tax advantages, attractive depreciation schedules are what push many investors to sign on the dotted line. An investor can deduct the decline in value of assets in a property that was used to generate rent, and can deduct the value of capital works over a number of years, reducing their taxable income. On the topic of location, investors are generally more numbers-driven than owner-occupiers, choosing to purchase properties in locations where land values are most likely to increase in the future. For more on why wealthy investor love buying The Block apartments, head to Domain.com.au