Share your most recent visit by the depreciation fairy for a recently acquired IP. Property: Recently renovated (by former owner) 70's era 3-bedroom QLD highset with double garage, rumpus. I've had approx $10k of work completed after settlement. IP settled on 23/6. Depreciation: Depreciation will be $7.1k in year 1 ( diminishing value ) or $5.8k in year 1 ( low value pool ). Your estimate: This is way above the estimate I used for cashflow on this property ( I used $3k as an optimistic figure ). Helps that the property had kitchen / bathroom renos as well as numerous other improvements before I bought it.