Hi everyone,
I have a question which I would like your honest opinion on.
When choosing a quantity surveyor to do a depreciation report would you opt in for an online company (eg CORPRED) who charge $200 approx or who you go with a 'Full Service' company such as BMT, which charge approx $500 – $600? I have noticed BMT do get recommended by various accountants.
The online company states they are registered and compliant with ATO standards however no inspection is ever completed.
It relys on you inputting the information and uploading the photos as proof.Most the properties I have bought of late are ones which required renovating so I have also read you can get a 'scrapping report' completed. Correct me if I am wrong however I have been advised by Corpred that to get the scrapping report you get charged double, unless you only claim up to $300?
I dont mind paying extra for a report as long it is still value for money and offers me more deductions than the online service can.
I would appreciate to hear what other investors recommend.
Thanks,
Jacqui
From an industry point of view, it is always better to have an inspection undertaken. Photos provided to a QS may be inappropriate eg old or from a different property, not that anyone would. The other issue includes transfer of risk ie the QS is reliant on the information provided by you,re if you something there is no recourse, if the QS missed it upon inspection, then they are at fault.
Is a QS report similar to like a pest and building where they have all the disclaimers in there to say they take no responsibility etc?
Which company do you use and what price is reasonable to pay for a full inspection , QS and scrapping report?
Does anyone get any discount vouchers with BMT?
a QS report will be conditioned, more so if there has not been an inspection but the extent of damages which could be sought would be a lot less than for a pest/building inspection.
Possibly best to check their websites & call a QS to discuss your concerns.
Hi there,
I got a discount on my report from bmt through our property manger. One was Lj hooker the other century 21.
I’ve used corpred for a few properties and I’ve been happy so far. I can’t comment on the other option (ie. having a QS visit the property because I’ve never actually gone down this path.
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi NOS1,
What percentage or $ discount did they offer you?
Which company do you use Scott No Mates?
Cheers
Jacqui
I remember reading Henry Kaye used to get 3 or so reports done and then use the best one!
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
We have always used QS that actually visit and inspect the property. They are the experts and know what they are doing. Remote QS reports – meh.
Terryw wrote:I remember reading Henry Kaye used to get 3 or so reports done and then use the best one!Just like other professional services – lawyers, accountants etc.
Hi jacqui,
It was about $60 off the normal price. You should also look at how long the different companies reports last for, they do vary quite a lot.
Hi Jacqui,
I am helping a friend sell their property in Hampton park through my site. They have gotten a QS done on the property and used someone not connected to any real-estate agent or solicitor where there may be a $$ remuneration for them to do so.I would recommend that you organize an independent QS to do your work for you. That way you know that there is no conflict of interests happening.
BMT offered a similar discount of $65.
They were cheaper than Washington Brown.
Tried calling Corpred and phone was disconnected and every time I have tried getting onto them goes to a third party message bank service?
Wonder if they have closed? Seems dodgey to me!
I’m chiming in with question:
I am buying my first unit off a plan. the Builder has put out a thorough document detailing all building costs and finishing. = $170K brick and tile strata unit
Is a quantity surveyor necessary?
If not, how do I work out the depreciation that I should claim year by year?
Hi Frank,
I recommend you call a Quantity Surveyor – for around $500 +- they will provide you with a report detailing your claims for 40 years. This report will be more comprehensive than the builders report.
Money well spent.
PS many of the bigger QS/depreciation companies work closely with the ATO so they are on the same page.
Your accountant basically only needs to open the report up and transfer the figures from one piece of paper to another. Makes life pretty simple.
Derek wrote:PS many of the bigger QS/depreciation companies work closely with the ATO so they are on the same page.Your accountant basically only needs to open the report up and transfer the figures from one piece of paper to another. Makes life pretty simple.
Cheers Derek for the valuable advice.
Thinking it over, it would probably pay for itself in saved Accounting fees alone over a few years.Pretty rough maths here people but for a new townhouse you are looking at approximately 66% of purchase price as being depreciable.
Is it worth spending ~$500+ damn right it is.
Thinking it over, it would probably pay for itself in saved Accounting fees alone over a few years.You must be logged in to reply to this topic. If you don't have an account, you can register here.
