Depreciation – Everything Investors Need to Know | Ep. 146

In this episode, we discuss depreciation. Depreciation is when the value of the things inside your home gradually decrease in value. It's a cost to you as an investor, but you don't actually pay for it in cash. This means that you can use depreciation to decrease the amount of tax you pay to the IRD each year.  Since the 2011-2012 financial year investors have no longer been able to claim depreciation on the value of their building (if it has a useful life of 50 years or less). However, they still can claim depreciation on the chattels within the building.  Here, we discuss the different types of depreciation and what can and can't be depreciated. This is a lead up to the next episode where we talk about ringfencing.  If you want to learn more about investment property, then why not check out our guide to how to get a mortgage? It's a 9,500-word guide called the Epic Guide to Mortgages and as well as helping you get one it will also teach you how to pay it off faster.

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