Property / Real Estate As An Investment

[Australia Sucks]

But there is also the absurd category of "depreciation" where you can subtract a mathematically calculated percentage of your building value every year, thousands of dollars, offsetting your rental income. And then many times when you sell, you can defer or eliminate taxes on your profits as well.

To be fair most modern buildings do have a limited lifespan. Depreciation is a very real expense if its a newly built crap-box that has to be demolished in 50 years time and new house rebuilt.

But if for example if its an 800 year old stone house in Italy that house could survive for another 800 years if its maintained properly then depreciation is a less real expense (albeit the interior of the house will still need renovation every so often so its still partly a real expense).

 

[magoo]