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Renovating · Koste Knowledge Base

How Construction Defects Impact Property Value and Depreciation

Quick Answer

Construction defects can significantly reduce a property's market value and affect depreciation claims under Division 40 and Division 43 of the ITAA 1997. Defects may require costly repairs, impacting the capital works deductions and potentially leading to disputes with contractors or insurers. Professional assessment is crucial to mitigate financial losses.

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Written by Koste Team · Koste Chartered Quantity Surveyors · AIQS Member · RICS Member · TPB Registered · 1300 669 400 · info@koste.ai