Paul: Good day, guys. Paul Glossop here from Pure Property Investments. Today, we’re here as part of our educational series with Tuan Duong. Tuan is the principal at Duo Tax. He’s a qualified quantity surveyor, and also he’s a good friend of Pure Property Investments. Tuan, today we’d like to probably talk a little bit about, if you don’t mind, dispelling a few myths on new versus old properties and where depreciation comes into play, and so often within my business, I see clients coming in buying existing properties. We don’t do new or off-the-plan properties, so people sometimes ask me the question, “Well, where is the value in a depreciation schedule, if it’s not brand new? Because I thought things depreciated pretty much in the first couple of years, and then after that, we can’t actually get any depreciation assets out of our benefits, out of that property.” So if you wouldn’t mind telling our viewers, I guess, a little bit about the numbers and how that works for investment properties that aren’t brand new and also existing properties. Tuan: Sure, Paul. Yeah, for sure, I’d like to sort of clarify on that point. Being with tax depreciation schedules, all properties are entitled to claim depreciation whether they are old or new. Typically what happens is the ATO has provided a cut-off date being 1987 to claim any depreciation on capital works. When we say capital works, that incorporates anything that comes with a structure. Anything from the slab all the way to your roof is entitled to claim depreciation on capital works. Anything built prior to 1987, we can claim plant and equipment list, which includes things like the air conditioning, carpet fit-outs and what not. So with that, what happens then is anything that’s built before 1987, you can still claim depreciation except the residual value on those items of plant and equipment are a lot lower, and hence the depreciation amounts won’t be significant like a brand new property. That’s something that is commonly mistaken, and hence we can claim the depreciation. It’s just a matter of getting a quantity surveyor to inspect it, have a look at it and make an assessment as to whether what’s claimable. Paul: Perfect. Then that is some very good points there. I think that’s some of the lessons that we have found over the years with a lot of properties both in my personal portfolio and also for our clients. We have properties over the years that aren’t…and I personally owned properties that are over 50 years old. I have properties that are only a couple of years old. I’ve got a brand new property at the moment that I’ve just built. There are significant amounts of depreciation in each one of those. I think having a licensed quantity surveyor go in and make sure they apply it correctly and understand where the value is in that depreciation schedule is so valuable. And I think, so often the myth is that if it’s old, you can’t make anything out of it. Not necessarily the truth, and contrary to that, there is a lot of tax benefits that investors can always look at maximizing, but they need to obviously make sure that they are engaging a licensed quantity surveyor. So some very sound advice and much appreciated. I hope you guys got something out of that, and we’ll see you soon.