Is there really a lot of difference in the depreciation schedules that different companies produce? I'm trying to get a good price and to save $102 on 2 depreciation schedule I'm thinking of going with one high profile company over another. Is this a good idea or would the cheaper one not be as good?
Thanks, both visit the property and both are very well known large national firms. I assume both of these schedules are tax deductible, is there any reason why they wouldn't be? I told one company that I wasn't happy with their quote, their first quote (end of June 2012) was $600 for one property but I didn't do anything about it so they quoted me $685 per property for 2. But they have said that once a cosmetic reno is done on one within the next 12 months they would charge me $330 to re-do it if I provide receipts (ie. they wouldn't visit the property). The other company have quoted me $629 each for 2 properties with no mention of what they charge after the renovation. I'm planning on purchasing another property by the end of the year and at least 2 more in the first half of next year. Should I wait and get them all quoted at once? Are there any tax implications of not having them done now? (In hindsight this might be better in the accounting posts!)
After discussing it with my accountant today (who specialised in property investments) I have decided to go with Washington Brown instead of BMT. He suggests to clients to use these companies ( although I hadn't discussed this previoulsy) and doesn't have a preference. He suggested i go with the cheaper one because at the end of the day he reckons they give me the same answer anyway.
Also Terry, I'm trying to be frugal and save $100! Getting both would cost $685 more!
I doubt very much that I'll even have $3000 worth of tax savings per year for one of the properties. Do you really think that professional quantity surveyors that work for large national companies (and basically follow a publicised document) would have that much variation in their reports? I highly doubt it but I'm tempted to get both for interest sake now. Its probably not worth it on one of my properties which I only paid low $100,000s for but the other property it may be.
I find it interesting that that they seem to quote differently depending on where the property is located. Adelaide's depreciation schedules seem to be cheaper than those in Sydney and Brisbane. Has anyone experienced this? I expect it has something to do with overheads and pay rates.
I accidentally got 2 depreciation schedules for the same house in QLD. I filled out an internet enquiry form and the company I did that with interpreted it as a request and went ahead and inspected the house without my knowledge (got keys from the agent as the house was vacant at the time) then emailed me the report and an invoice.
However I had done my homework and organised another company (BMT) to do it and already had it completed with them when the new one came through. I mainly got BMT because they had a discount if we had purchased through a particular real estate agent, plus they are Australia wide and we were likely to use them again and again (which we have since done).
The short answer is that yes they can be very different and the amounts you can claim can be very different and amount to thousands per year for many years. How on earth you would be able to know that without actually getting multiple schedules I don't know. On the back of my experience I would pick BMT every time.
Also I asked the other company for a copy of my signed authority to go ahead, which of course they didn't have and so I did not have to pay- they did admit their error in the end.