I'm looking at buying my second investment property and have found an apartment I'm interested in that's a brand new development. I'd be buying off the plans and so would be eligible for the stamp duty exemption which is already a bonus, but I believe since it's a brand new property I'll also be able to claim depreciation on things. I've been hunting around the internet trying to find out exactly how/what I can claim and was hoping someone could perhaps clarify a few things: 1. Cost - From what I've gathered my cost is "construction cost" not the purchase price, is this correct? Or can I claim off the purchase price? As far as I am aware construction cost basically includes the cost of everything it took to get the apartment finished. (i.e. materials, labour, fixtures, fittings etc.) 2. Effective Life - How exactly would I work out the effective life? I've read here that the effective life for a new structure would be 40 years, is this correct? I haven't been able to find much else on the ATO website. 3. Consolidation/Individualization - Do I have a choice of consolidating everything under the one cost - Construction Cost - Or can/should I individualize everything? For example, I'd imagine fixtures/fittings would have a much shorter effective life than the structure itself, so it may potentially be beneficial to individualize these claims? (I'm guessing my construction costs would categorized, so I'd know how much $ was spent on what, so this does sound feasible.) 4. Really basic question here - To my knowledge I can choose from 2 depreciation methods - Diminishing Value and Prime Cost - I've gathered that Diminishing Value means you get more money earlier, but it declines over the life of the asset where as Prime Cost is the same set amount each year for the life of the Asset. My question is, at the end of the life of the asset, do you end up getting the same amount back? Or does one end up better than the other? (Naturally I'd like to get back as much as possible) Thanks in advance guys. I understand I should speak with a financial advisor or accountant about all this, which I plan on doing - However I like to know and understand how things work before speaking with such people otherwise I just sit there clueless as to what's going on. I won't be taking any of the information given to me as gospel, but rather a point in the right direction, so I have a good idea on what to speak to my accountant about.