The importance of depreciation on property

[dianelanix]

When considering investing in property, there are so many things to consider. One being rental income, another being expenses, location, the type of property, but there’s actually one component that many investors are leaving behind. And, I mean, a lot of investors. So when we talk about depreciation, firstly what does that mean? Well, depreciation is the loss in value over time of an asset due to wear and tear. And houses or the building of the house, not the land actually depreciates over time. Whereas the land is what we look for, for appreciation.

[tracyloothes]

Let’s talk about tax perks for landlords. You’ve probably heard the concept of residential rental property depreciation if you’re looking into becoming a property investor. It turns out tax depreciation on rental property is one of those gifts that keeps on giving in terms of getting a tax break.