Scott Cam and real estate experts explain: What is depreciation and why is it so valuable when it comes to buying a Block house?

Scott Cam openly shares that buying a Block house is an exceptional investment – and he's not biased. According to him, it's smart business all thanks to a little something known as depreciation.

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In fact, he's the proud owner of a Block property himself. Scott snapped up the challenge apartment in Port Melbourne's 12th season of the show, located in the legendary 'soap factory'.

He loves that it came as a turn-key solution.

"Fully furnished, fully finished, with art on the walls, beds, sheets, towels," he lists.

Scott's not the only one who thinks a Block home is a sound purchase. Industry friend, radio and TV star Dave Hughes can also call himself a Block house owner, having purchased Block winners Josh and Elyse's house in Elsternwick in 2017, for $3.06 million.

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Scott added that Dave was amazed at the opportunity to buy when he realised the fully furnished and decorated home also presented a tax depreciation opportunity.

"He said, 'Mate, it's the best investment I've ever bought!' It's never not been leased, he's always had a tenant in it, and he's just been offered [almost double for it]," Scotty said at the time.

On 2024's The Block Island, in Week 11 of the competition, surveyor Bradley Beer from BMT inspected all five house to evaluate each houses' depreciation schedule and construction costs. Right down to the cent.

If you're interested to know the exact amounts Bradley came up with for each house on The Block 2024, you can catch the results below. The values might surprise you.

What is depreciation?

Depreciation on a property is just compensation for wear and tear.

The depreciation schedule is a comprehensive report which outlines the historical construction costs and asset values of a property, as well as an annual value for their depreciation due to ageing and gradual deterioration.

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Former contestant Tom Calleja explained it as: "I think the surveyor writes a list of everything that's in your house, and sums it up and works out what it's worth, what you've paid for it and what it would cost to build.

"He works out what percentage of it can be used as a tax deduction."

"A depreciation tax benefit is a great incentive for investors interested in buying one of The Block properties," host Scott Cam added.

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