Forums / Property Investing / Help Needed! / Is highrise apartment worth claiming deprieciation if it’s 13 years old?

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  • Profile photo of leehom222leehom222
    Member
    @leehom222
    Join Date: 2011
    Post Count: 6

    Hi everyone,

    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 advance

    Profile photo of Mick CMick C
    Participant
    @shape
    Join Date: 2010
    Post Count: 1,099

    A few companies are happy to give a quote before you pay them.

    Regards
    Michael

    Mick C | Shape Home Loans
    http://www.shapehomeloans.com.au/
    Email Me | Phone Me

    Same Banks. Better Rates. Served With a Passion.

    Profile photo of leehom222leehom222
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    @leehom222
    Join Date: 2011
    Post Count: 6

    Thanks Michael,

    Do you have their details handy?

    regards,

    Profile photo of Mick CMick C
    Participant
    @shape
    Join Date: 2010
    Post Count: 1,099

    http://www.washingtonbrown.com.au/

    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.

    Regards
    Michael

    Mick C | Shape Home Loans
    http://www.shapehomeloans.com.au/
    Email Me | Phone Me

    Same Banks. Better Rates. Served With a Passion.

    Profile photo of Jamie MooreJamie Moore
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    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Hi Leehom

    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.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of BluegrassBluegrass
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    @bluegrass
    Join Date: 2009
    Post Count: 73

    Hi Leehom
    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!
    Regards
    Bluegrass

    Profile photo of naughtyjnaughtyj
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    @naughtyj
    Join Date: 2011
    Post 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.

    Profile photo of Andrew Lee LawyersAndrew Lee Lawyers
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    @andrew-lee-lawyers
    Join Date: 2011
    Post Count: 37

    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.

    Profile photo of emptyvesselemptyvessel
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    @emptyvessel
    Join Date: 2008
    Post 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.

    Profile photo of fredo_4305fredo_4305
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    @fredo_4305
    Join Date: 2009
    Post 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.

    Profile photo of Andrew Lee LawyersAndrew Lee Lawyers
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    @andrew-lee-lawyers
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    Post Count: 37

    I've checked with Wash Brown, pretty much same quote. I guess the fact that identical, does not affect the fee too much

    Profile photo of Andrew Lee LawyersAndrew Lee Lawyers
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    @andrew-lee-lawyers
    Join Date: 2011
    Post Count: 37

    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.

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