Are The Block 2025 houses a good investment?
With price guides starting at $3 million, and claimable depreciation deductions of between $5.4 million and almost $6 million per house, The Block properties look like they could be excellent investments.
“Certainly, if they’d been built by a developer rather than by people on a TV show, relying on funds from the network and advertisers, the developers would be broke by now,” says tax depreciation expert Bradley Beer from BMT Tax Depreciation.
“They’ve been spending more on these houses than they hope to get back. But that’s excellent news for anyone who bids for them and ends up buying. [There are] a lot of expenses that are claimable.”
The Australian Taxation Office allows all investors to claim for the natural wear and tear of buildings and their assets, but newly built and fully furnished homes like those on The Block maximise returns by allowing buyers to claim both capital works (that is, the structure of the properties, like floors, walls and roofs) and plant and equipment (items such as the carpet, hot water equipment and furnishings).
“Every dollar claimed in tax depreciation reduces taxable income, which means more money stays in the buyer’s hands,” Beer says. “For The Block properties, the deductions don’t just offset the cost – they can outweigh it entirely. That’s an extraordinary edge for investors.”
Though they may have struggled to top the leader board when it came to room reveals, Sonny and Alicia’s House 4 could be the standout for investors.
They’ve topped the list in terms of claimables at $5,934,256, with $275,802 able to be claimed in the first year alone.
South Australian best mates Robby and Mat have the next highest level of claimable tax deductions, at $5,670,416.
Third in the tax tally is West Australian duo Britt and Taz’s entertainers’ haven, with its controversial Pilates studio. The buyer of this home will be able to claim $5,641,533.
Serial renovators Emma and Ben’s country-style house is another hot buy, with potentially $5,474,110 worth of deductions.
And, finally, Han and Can, with their now legendary transparent amber resin bath, have $5,465,637 in deductions awaiting their buyer.
The average first-year claim for buyers across all five homes tops $236,000, giving them a substantial first-year cash-flow boost.
While the deductions claimed are added to the capital gain on the buyer’s eventual sale, that’s halved if the property is owned for a year or more.
| House | Total deductions |
| House 1: Emma and Ben | $5,474,110 |
| House 2: Han and Can | $5,465,637 |
| House 3: Britt and Taz | $5,641,533 |
| House 4: Sonny and Alicia | $5,934,256 |
| House 5: Robby and Mat | $5,670,416 |
Amir Ishak of Property Tax Specialists Australia says that if the next seller makes, perhaps, $300,000 profit on the sale and had claimed depreciation of $10,000 on the initial purchase, then after a year, they will have saved $5000 in tax.
“They’re getting the tax deduction [upfront], so they’ll still be better off after that first year, when they only have to pay 50 per cent,” he says. “The only situation when it would be neutral is if they hadn’t kept it for more than 12 months.
“But even then, there might be a benefit as they’d had access to those extra funds for that period of time, and might have made money on them.”
And, Beer adds, a dollar in the pocket now is worth a great deal more than a dollar in perhaps 10 years’ time. “With that money, you might have used it to reduce debt or offset other expenses, which will leave you well ahead,” he says.
While that’s a nice added bonus, that shouldn’t be the main factor that investors consider when looking at The Block houses, says Jarrod McCabe, director of Wakelin Property Advisory.
“Tax isn’t going to be what will set you up for wealth creation,” he says. “It’s an added benefit, but it’s not a major reason to decide to buy a property.
“Capital growth characteristics like strong underlying land values, scarcity, and a property that fits a lot of buyer profiles are much more important for your decision.”
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