Can Investment Properties Depreciate? How O Johnston & Co Mitigates Risk for High-End Investors
Can Investment Properties Depreciate?
In short—yes, investment properties can depreciate. But the real question for serious investors isn’t if they can depreciate, it’s how that depreciation fits into a broader strategy to generate wealth. At O Johnston & Co, we help our clients view depreciation not as a risk to fear, but as a factor to control. With the right strategy, it can be mitigated—and in some cases, even turned to advantage.
Why Depreciation Is a Problem for Investors
Depreciation—whether physical (due to wear and tear) or economic (due to market conditions)—can significantly impact an investment’s profitability. A property that loses value erodes capital gains potential, affects refinance options, and may lead to a poor yield if rental income doesn’t keep pace with maintenance or vacancy costs.
For investors, depreciation translates to a potential drop in asset value and increased holding costs. It also introduces uncertainty, particularly when investing without full market visibility or strategy. Over time, a poorly selected asset can become more liability than investment—especially if located in a declining area or poorly managed.
How Working with O Johnston & Co Minimises Depreciation Risk
Our clients come to us not just to acquire property, but to acquire the right property—assets that perform. At O Johnston & Co, we specialise in strategic property sourcing and high-return investment structures that are engineered to protect against depreciation and enhance long-term value. Here’s how:
We identify resilient, appreciating locations by analysing regional data, regeneration projects, infrastructure growth, and tenant demand trends.
We source below-market opportunities and unlock uplift through planning gains, refurbishment, or repositioning strategies.
We work to deliver returns inside 12 months, shortening your exposure to long-term market shifts.
We ensure consistent, high-quality rental income, which offsets depreciation risks by maintaining strong cash flow and asset desirability.
Put simply, we don’t let our clients buy risk—we deliver structured, high-end investment solutions backed by data and experience.
A Final Word
Depreciation is real—but so is the ability to avoid it. With the right sourcing partner, a clear exit strategy, and properties chosen for performance, the risk can be reduced significantly.
At O Johnston & Co, property is our vehicle—but strategy is our engine. If you’re looking for a partner who will navigate the complexities and protect your capital from silent threats like depreciation, we’re ready to work with you.
