Despite all of the recent changes to depreciation the benefits for commercial property owners are still fantastic. I have covered this in recent articles but thought I should let the figures do the talking. I have decided to highlight a recent example for a property we have completed an apportionment on.
PROPERTY TYPE: 92 room hostel located in Auckland. Configuration is 56 studio rooms and 36 lofted rooms in addition to a managers’ flat and office. The complex is built around a central open courtyard, with all rooms enjoying communal use of a kitchen, dining area, TV lounge and laundry. The building originally comprised an office/warehouse structure which was redeveloped to its current use in 2002.
PURCHASE PRICE: $5,156,862 including $100,000 of Plant and Equipment