Buying into a Strata block that has upcoming capital works - depreciation?

hi,

looking to purchase a 2 bed unit in a very good position near a metro beach.

60's era block. 12 units in the block.

the owners have all agreed and are proceeding on a ~$1.8 mil reno to the exterior of the building using a very reputable strata remedial works building company (render/all new windows/balcony doors/security system etc). all costed/quoted/quote accepted. cost to each unit is ~$140k. $50k of that would be payable a few months after settlement for a new buyer. the remaining $90k would be financed with a loan the strata committee has organised and will run for 2 years, to enable all owners to pay (a few of the owners wanted the works done, but needed the loan as they could pay all upfront) - so a buyer would be paying special levies for a 2 year period to cover the total amount due - along with all the other owners so its equal for all.

question:

as a potential buyer, if we know about this upcoming special levy as a buyer entering prior to the special levy being due, and we negotiate a buy price in light of it, are these external works (render/new windows/doors etc) typically claimable in a depreciation schedule?

to complicate the question slightly (just what we need ! , this is a unit we would move into and live in initially for 6 months due to personal circumstances, and this reno work would all commence during that time. After 6 months we’d be moving out, and we’d rent it out - at which point it becomes an investment property. does that circumstance greatly change the claimable depreciation situation?

Any thoughts brains trust?

I am checking with an accountant but being right around end of financial year i’m not sure they are going to respond very quickly - so i was hoping to get some pointers here first

 

Those works could be seen as 'improvements' for a new buyer. You would not claim the Special Levy contribution as a deduction, but you would depreciate the cost of the works at 2.5%pa from when you start to rent out the property.
I hope you are getting the unit at a significant discount.