#357: Investor Tax Trap - The Costly Depreciation Mistakes You Don’t Know You’re Making
The Property Trio (formerly The Property Planner, Buyer and Professor)Show Notes
🎧 In this episode, the Property Trio unpack the often misunderstood world of tax depreciation.
Cate, Dave and Mike explain the difference between Division 43 and Division 40, and why structuring depreciation correctly can significantly impact early cash flow.
They also explore the 2017 rule changes, the role of quantity surveyors, and overlooked opportunities like common property in apartments. From costly mistakes to unusual tax cases, the key message is clear: it’s not about being clever with tax... it’s about a having clear strategy and being informed.
The Property Trio is:
David Johnston, Mortgage Broker - Managing Director of Property Planning Australia https://propertyplanning.com.au/
Cate Bakos, Buyers Advocate - Managing Director of Cate Bakos Property https://www.catebakos.com.au/
Mike Mortlock, Quantity Surveyor - Managing Director of MCG Quantity Surveyors https://www.mcgqs.com.au/
📩 Got a question you want answered in a future episode? Send it through https://www.propertytrio.com.au/contact-us/
You can find more info about topics covered in today's show here:https://www.propertytrio.com.au/2026/04/13/investor-tax-trap/
More from The Property Trio (formerly The Property Planner, Buyer and Professor)
🎧 Cate, Dave and Mike return with practical strategies to make your mortgage work harder now the cash rate has hit a 15-year high. Dave flags a costly trap for home owners converting their home into an investment property, before the trio unpacks the credit card and offset strategy, fixed rates, loan splitting and break costs. With values softening, could your LVR push you into Lenders Mortgage Insurance, or is the valuation lag still working in your favour? Debt consolidation, cashback offers and household cash flow round out an episode proving smart mortgage strategy is rarely about chasing the lowest rate.
🎧 In this month’s Property Trio market update, Cate and Dave unpack the latest September figures and focus on some of the leading indicators to understand what is happening across Australia’s property markets.
With Dave away, Mike and Cate tackle a common assumption: that a softer market makes life easier for buyers. Cate explains why a bear market is harder work for everyone.
With Cate away, Dave and Mike unpack the 2026 PIPA Annual Investor Sentiment Survey. Investor sales have risen for a fourth straight year to 18.3%, while only 27.8% plan to buy again, down from 41%. Just 12.4% of sellers sold to a first home buyer, 62.3% of portfolios are now negatively cash flowed, and 87% doubt future governments will keep tax settings stable. Melbourne tops the list of places to invest at 38.7%, despite Victoria ranking near the bottom for investor friendliness. If investors keep stepping back, what does that mean for renters and the rental pool?
🎙️In this episode, Dave and Cate answer a listener question from Nikhil, who has bought five properties, (four through buyer's agents) and wants to start buying interstate himself. The pair set out what it actually takes to buy well somewhere you don't live. Cate explains why unfamiliar markets are hard to read, how contract legislation differs between states and territories, and where to research a suburb's socio-economic story.