Hi,
We are buying a 4bdr, an old property. We need to replace Gutters and down pipes, painting inside out side, new carpet for 3 BDR and plaster of 3 walls, some repairs in kitchen.
Do we need a valuation report before renting it out. What is benefit of doing valuation? Do we need a depreciation report as well?
I am just learning IP things, it is my 2nd IP but I never thought about all these things like tax benefits etc.
Thanks a lot.it will be in your best interests to get a depreciation schedule. If your buying the property to rent out then the purchase price is your starting point. We lived in ours then rented it out a couple of years later so we got a valuation done.
You would only get a valuation if your going to refinance and draw out equity. You will probably need one of the banks valuers as well. I recommend getting an accountant that specialises in property. Getting a depreciation before you start renovating I found out recently could have got me $4000 tax deductions. Its worthwhile getting great advisers. Good luck. Keen to hear how it goes.
Good to have a renovating team ready to go;
Valuer (estimated value at time of completion, post reno)
Builder
Architect (to check over the builder)
Financier (finance ready!)Crucial advisers to have ready. No guesswork with renos, you guess, you may lose. You would rather do your research… buy wholesale, get some expert opinions. If you research, you cant really go wrong can you?
Thanks a lot for help. When I first posted this topic, we were interested in a 4BDR property. But we found a newly renovated 3bdr property and bought for $390K in Parkwood (WA). Settlemet is on 19th Nov 09. We were actively searching a good deal and last week we found a 3bdr, 821m2 subdividable section but old house. Offered $266500 last night. It needs new paint, some work in kitchen and bathroom and landscaping. We both are working so we choose 19th Dec 09 for settlement. We will be taking 4 weeks leave and we will start minor reno on the property. Rent range would be $270 -$310 depends on conditions like pet or no pet.
Thanks again.
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