Depreciation Values

[gwarbur]

I am looking at IP's (house) of varying ages - from new, up to 10 years old.
Mostly they are standard 3 or 4 bedroom, double garage and ensuite with "standard" quality fittings (not cheap, but not expensive).
As the age effect the depreciation available on a property I can claim for tax, is there a rule of thumb, or lookup table that I can use to estimate what the Sec. 43 Building writeoff and Plant depreciation costs may be. Even someone with an example depreciation schedule, as I have only ever invested in units, and don't have estimates for houses.
This will really help me analyse if a property is worth investing in.

Thanks, Glenn.

[slades]

Hi gwarbur,

Go to www.ato.gov.au and put NAT 1729 in the search box and you'll find it will bring up a document that might answer all your questions..or else confuse you thoroughly!! You can read the doc online, print a copy, or they'll even send you hard copy in the mail.

Cheers
Slades

[depreciator]

Hi Slades,
We have a Depreciation Calculator on our site. It's pretty detailed and takes about 15 minutes per property - we had to make it like this ia anything less detailed simply isn't accurate. It's also a pay per use tool - $49 - which we discount from our Depreciation Schedule fee if you go on to commission a Schedule.
Now, the problem there is that if you're looking at a number of properties you won't want to be using this tool too often.
If there is one property you are particularly interested in, send me some photographs - inside and outside - and a brief description and I will get one of our QSs to do a rough estimate for your research purposes.
Scott

[depreciator]

Me again.
Glenn, I guess there are some general 'rules of thumb' you might have in the back of your mind re: Division 43. Most are pretty obvious.
1. Newer properties tend to have a higher construction cost.
2. Cost vary from place to place. Sydney has probably always been the most expensive capital city to build in. Perth would be fast catching up. Adelaide and Hobart have tended to be cheaper. Costs vary alot in regional areas. Some have cheap labour, but the cost of getting materials there can blow costs out. I did hear annecdotally that along parts of the Queensland coast last year building costs were going up 1% per month due to a lack of tradesmen.
3. Difficult sites can increase cost.
4. The type of construction will have an impact, too i.e. cavity brick vs brick veneer.

If your local library has a publication called Rawlinsons, you might have a flick through it. This is a QS industry tome on building costs.

When it comes to Assets (fixtures and fittings), obviously carpet, air cons, good appliances etc help to bump up the depreciation claim.

I have always said that depreciation is great for cash flow, but it should not be a deciding factor in a purchase.

Scott