leehom222Member@leehom222Join Date: 2011Post Count: 6
Just wondering I have an IP that's a 13 years old apartment in CBD sydney. Do you think I can still claim a reasonable amonut of depreciation on it? Not sure if it worth the investment of hiring someone for 450 to do those valuation.
Thanks in advanceMick CParticipant@shapeJoin Date: 2010Post Count: 1,099leehom222Member@leehom222Join Date: 2011Post Count: 6
Do you have their details handy?
regards,Mick CParticipant@shapeJoin Date: 2010Post Count: 1,099
Put in the basic details- age, location etc…and it will give you a rough quote.
Also instead of paying $450 which is the full service, you could go for a “basic service” where YOU provide al the pictures and details + measurement of the unit and they will provide the reports based on your pics and details – cost around $220.
MichaelJamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069
I’ve yet to see a depreciation schedule that hasn’t paid for itself in the first year. 13 years old isn’t that old – I’d assume you could still depreciate quite a bit. There are also free online calculators – try the one on the corpred website.
JamieBluegrassParticipant@bluegrassJoin Date: 2009Post Count: 73
Usually the internal depreciation runs out at around 7 years and the external 25 years.
So you have some of the external left.
Internal, the best thing to do is renovate what is there.
Do the carpets, curtains, paint, fans, lightfittings etc. and then get you QS back in.
You will be pleasantly suprised at what can be achieved for not a lot of money.
Use the equity to pay for it and then up the rent because it now looks new!
BluegrassnaughtyjParticipant@naughtyjJoin Date: 2011Post Count: 17
Quick comment – and this is uninformed, so if someone does have better info, then please reply.
Firstly, I am assuming that you've only relatively recently purchased the property (reason being you would have been claiming depreciation beforehand).
As others have said, if you have internals, then a QS probably will pay for itself in the first year alone. Things like curtain, stove etc probably has some value now that you can claim – sometimes you can get pleasantly surprised at what you can claim.
IF you're just after the building depreciation (and you have only recently purchased it), it's (AFAIK) based on the cost of the building when it was put up 13 years ago – have you tried contacting the previous owner to see if they have kept the figures from when they owned it? Building depreciation shouldn't change over the 40 or so years you can claim it for, so you could probably just submit their numbers to your accountant and have him (or her) work on the basis of those figures.
As I said – not an expert, so if someone does know better, then more than happy to be corrected.
Oh thanks, a few people referred me to BMT, and their discounted fee was $1500 plus GST for 3 properties. I almost got them to go ahead and do it.
Two of the properties are identical town houses next to each other. They insisted that I get separate ones, as the furnishings might be different. I would have thought the major component (the building) could be covered under one report. The internals were pretty much identical, as I haven't spent much other than the odd water heater on internals.
this forum has just saved me at least $900.emptyvesselMember@emptyvesselJoin Date: 2008Post Count: 170
As a repeat customer of BMT, I was quoted a similar $1500 + GST figure for 3 villas on one title. 2 of the villas were absolutely identical and the third was the same with an extra garage. The original quote they gave me was over $2200 before I mentioned the words "competition" and "shop around".
I shopped the quote around and consistently got cheaper (and faster) from some other companies – DEPPRO and The Depreciator were a couple that come to mind.
I eventually went with DEPPRO for ~$950. Report was doen within 2 weeks with minimal fuss and the quality was almost as good as the BMT one I had done previously.
VERY disappointed with BMT. They treated me like an uninformed idiot. I am most certainly not uninformed, albeit I may be an idiot
Pays to shop around.fredo_4305Participant@fredo_4305Join Date: 2009Post Count: 336
I always get depreciation reports conducted. Even though I have a couple of semi renovated colonials in my portfolio that were built 1905 era I still got a heap back in my first year. The reports themselves are tax deductible.
I've checked with Wash Brown, pretty much same quote. I guess the fact that identical, does not affect the fee too much
My enquiry for a client,
We only require an external schedule. 2 of the properties are identical and next to each other.
We can also supply photos of the internals.
Someone mentioned around $220. Is that the case?
Response from Qauntity surveyors
An on-site inspection is required under ATO guidelines.
We have discounted in light of the circumstances you describe, but to have this done properly costs more than you have been advised.