madhun there is a world of difference between depreciating in value , versus claiming a 2.5% nominal building allowance on investment properties for tax purposes
the original poster said houses depreciate in value and land appreciates I said no, houses do not depreciate in value now they are all coming out saying yeh it does because you can claim depreciation I never disputed that, and the original poster never clarified he was talking about investment properties built after 1986 only there is a huge difference the claim for depreciation was a tax incentive for investors to buy and build investment properties............it is a paper claim only and will not affect the majority of people who own their own home I say houses appreciate in value no ifs. but, etc go on tell me you bought an investment property for 150,000 3 years ago, today it is worth 300,000 and you deduct the depreciation of 2.5% pa on the building and say the land increased by the difference
then go and talk to a builder about the cost of materials and his labour, huge increase in prices from 3 years ago to today, appreciation is the value today versus the value in the past cheers
