<![CDATA[Somersoft Property Investment Forums

<![CDATA[Somersoft Property Investment Forums - BMT & Assoc]]> http://www.somersoft.com/forums/member.php?u=6036 en Wed, 08 Sep 2010 08:22:02 GMT vBulletin 60 http://www.somersoft.com/forums/images/misc/rss.jpg <![CDATA[Somersoft Property Investment Forums - BMT & Assoc]]> http://www.somersoft.com/forums/member.php?u=6036 Town house building cost in Brisbane http://www.somersoft.com/forums/showthread.php?t=25178#post204061 Fri, 07 Apr 2006 02:17:22 GMT Hi setunge, This may be of some use for you http://www.bmtqs.com.au/construction_cost_calculator.htm Best Regards David Babic Hi setunge,

This may be of some use for you

http://www.bmtqs.com.au/construction...calculator.htm

Best Regards

David Babic ]]> Property Investment - Other http://www.somersoft.com/forums/showthread.php?t=25178#post204061 Insurance Brokers http://www.somersoft.com/forums/showthread.php?t=24681#post201967 Wed, 29 Mar 2006 05:57:31 GMT Hi All, A little off the topic of brokers and general insurance but still may be of interest to the forum in this thread, is the issue of replacement cost values or estimates for base building insurance calculations. With increasing insurance premiums and construction costs, it is becoming imperative that the replacement estimate is accurate. We believe a quantity surveyor with construction cost expertise is the most appropriately qualified professional to estimate the replacement cost of buildings. (my plug) FYI There are three possible outcomes from inaccurately estimated replacement costs: • Through having undervalued insurance replacement estimates of property, the owner runs the risk of significant losses in the event of a major disaster such as fire or earthquake; • If the replacement value is over stated, additional premiums will result; and • If underinsured and in the case of partial loss, the insurer may only pay that percentage of under-insurance leaving the building owner to meet the shortfall. When determining the replacement cost of a building many issues need to be considered, including but not limited to: • The costs associated with the demolition and removal of debris and asbestos following the event, including the associated consultant fees; • The cost of constructing the building considering updated planning constraints and building codes; • The cost of consultants fees, builders margins and all preliminaries; and Construction Cost Escalations need to be considered for the periods of; 1. Assessment of damage and claim finalisation; 2. Lead time of planning; 3. Design and documentation; 4. Calling of tenders and tender evaluation; 5. Construction and fit out period; and 6. Time lapse between policy renewal dates. Best Regards David B Hi All,

A little off the topic of brokers and general insurance but still may be of interest to the forum in this thread, is the issue of replacement cost values or estimates for base building insurance calculations. With increasing insurance premiums and construction costs, it is becoming imperative that the replacement estimate is accurate.

We believe a quantity surveyor with construction cost expertise is the most appropriately qualified professional to estimate the replacement cost of buildings. (my plug)

FYI

There are three possible outcomes from inaccurately estimated replacement costs:

• Through having undervalued insurance replacement estimates of property, the owner runs the risk of significant losses in the event of a major disaster such as fire or earthquake;

• If the replacement value is over stated, additional premiums will result; and

• If underinsured and in the case of partial loss, the insurer may only pay that percentage of under-insurance leaving the building owner to meet the shortfall.

When determining the replacement cost of a building many issues need to be considered, including but not limited to:

• The costs associated with the demolition and removal of debris and asbestos following the event, including the associated consultant fees;

• The cost of constructing the building considering updated planning constraints and building codes;

• The cost of consultants fees, builders margins and all preliminaries; and

Construction Cost Escalations need to be considered for the periods of;

1. Assessment of damage and claim finalisation;
2. Lead time of planning;
3. Design and documentation;
4. Calling of tenders and tender evaluation;
5. Construction and fit out period; and
6. Time lapse between policy renewal dates.

Best Regards

David B ]]> Property Investment - Other http://www.somersoft.com/forums/showthread.php?t=24681#post201967 Changes in Legislation http://www.somersoft.com/forums/showthread.php?t=25031#post201815 Tue, 28 Mar 2006 23:31:32 GMT Hi All, FYI Until recent changes to the Income Tax Assessment Act 1936 (ITAA 1936), property investors generally had up to 4 years within which they could amend a tax return for a particular income year. However, based on recent changes to the ITAA 1936, property investors now generally only have only 2 years within which they can amend a tax return. This change affects tax returns for the 2004-05 or a later income year. Obviously this only affects people who have either; 1. Not claimed deprecation to date and are entitled to back claim the potential deductions they were entitled to, or 2. When an investor discovers that when an inadequate Capital Allowance or Tax Depreciation report is reviewed and updated by a qualified quantity surveyor, they may need to amend returns for the prior years. Just thought I would let the forum know. Best Regards David B Hi All,

FYI

Until recent changes to the Income Tax Assessment Act 1936 (ITAA 1936), property investors generally had up to 4 years within which they could amend a tax return for a particular income year.

However, based on recent changes to the ITAA 1936, property investors now generally only have only 2 years within which they can amend a tax return.

This change affects tax returns for the 2004-05 or a later income year.

Obviously this only affects people who have either;

1. Not claimed deprecation to date and are entitled to back claim the potential deductions they were entitled to, or

2. When an investor discovers that when an inadequate Capital Allowance or Tax Depreciation report is reviewed and updated by a qualified quantity surveyor, they may need to amend returns for the prior years.

Just thought I would let the forum know.

Best Regards

David B ]]> Accounting and Tax http://www.somersoft.com/forums/showthread.php?t=25031#post201815 Depreciation Report on PPOR? http://www.somersoft.com/forums/showthread.php?t=24622#post196742 Wed, 08 Mar 2006 00:37:25 GMT ---Quote (Originally by TheBacon)--- Unless... My tenant moves out on the 10th, I move back on the 16th. Technically the place is available for rent until the 15th!!! I could get some things demolished in the mean time... Ah - just pulling your legs - not seriously considering this convoluted, difficult to defend strategy ;) TB ---End Quote--- Question! May I ask why not?

Quote:

Originally Posted by TheBacon

Unless...
My tenant moves out on the 10th, I move back on the 16th. Technically the place is available for rent until the 15th!!! I could get some things demolished in the mean time...

Ah - just pulling your legs - not seriously considering this convoluted, difficult to defend strategy ;)

TB

Question! May I ask why not? ]]> Accounting and Tax http://www.somersoft.com/forums/showthread.php?t=24622#post196742 Depreciation Report on PPOR? http://www.somersoft.com/forums/showthread.php?t=24622#post196582 Tue, 07 Mar 2006 05:28:42 GMT TheBacon, Obviously you are contemplating getting a depreciation schedule prepared. If I may offer some advice? Why not get two depreciation schedules done? A pre and post renovation report. There are however a number of questions that need to be asked to make this a viable option however a few details such as original purchase date and your initial scope/size of your proposed renovation will almost suffice. Let me explain with a quick example. Hypothetically the scenario is; you purchased this property 4 years ago and rented out for the past two. example; a depreciation report is prepared with a start date of 4 years ago. At this time the carpet starts depreciating with an opening value of $2000. Whilst the house was your PPOR for the first two years and you rented out for the last two years considering the effective life of carpet is 10 years and using the prime cost method (easy to calculate) you can claim $200 each financial year that it is producing income. In this situation you total $400. Here is the exciting bit. After the four years you decide to tear up all the carpet and polish the floor boards ie part of your renovation. At this time the (WDV) or written down value of the carpet is $1200. Assuming you do not sell the carpet and it goes in the skip bin, you are entitled to claim the residual value or balance if your like, left on that carpet. As you can see this can be a very lucrative means reducing the cost of a renovation. A lot of investors are unaware of such benefits and will only engage a QS to prepare a depreciation schedule after a renovation is completed. If there is any questions please post them or alternatively you can call me on 1300 728 726 TheBacon,

Obviously you are contemplating getting a depreciation schedule prepared. If I may offer some advice? Why not get two depreciation schedules done?
A pre and post renovation report. There are however a number of questions that need to be asked to make this a viable option however a few details such as original purchase date and your initial scope/size of your proposed renovation will almost suffice.
Let me explain with a quick example.
Hypothetically the scenario is; you purchased this property 4 years ago and rented out for the past two.
example; a depreciation report is prepared with a start date of 4 years ago. At this time the carpet starts depreciating with an opening value of $2000.
Whilst the house was your PPOR for the first two years and you rented out for the last two years considering the effective life of carpet is 10 years and using the prime cost method (easy to calculate) you can claim $200 each financial year that it is producing income. In this situation you total $400.
Here is the exciting bit. After the four years you decide to tear up all the carpet and polish the floor boards ie part of your renovation. At this time the (WDV) or written down value of the carpet is $1200. Assuming you do not sell the carpet and it goes in the skip bin, you are entitled to claim the residual value or balance if your like, left on that carpet. As you can see this can be a very lucrative means reducing the cost of a renovation. A lot of investors are unaware of such benefits and will only engage a QS to prepare a depreciation schedule after a renovation is completed.
If there is any questions please post them or alternatively you can call me on 1300 728 726 ]]> Accounting and Tax http://www.somersoft.com/forums/showthread.php?t=24622#post196582 Do I Need A Quant Surveyors rep. http://www.somersoft.com/forums/showthread.php?t=24429#post193999 Fri, 24 Feb 2006 07:05:49 GMT

Quote:

Originally Posted by WBG Redcliffe

WillG

The Building is 30y and I know that I can not claim on the building however the reno is just complete and cost about 30k for the two of them. the furnisher cost about 6k.

wayne

Hi WBG Redcliffe,

You can claim depreciation on all of the renovation costs and even any original plant & equipment. From what I can tell the renovation was done prior to your purchase? In this case a QS can estimate the cost of these works for you. All off the Plant & Equipment is revalued at the time of your purchase and sounds like the preparation of a depreciation schedule is definitely a viable option. If your account advises not to get a depreciation schedule, get a second opinion.
Lately many QS's have been using valuer's or real estate agents to carry out the inspections, particularly in such remote areas. As Scott has mentioned when a QS sends their staff (not contractors) it can take a while to get it inspected, however you are in luck. BMT will be in Mt Isa is the next few weeks and will be able to carry out the assessment for you.
In saying this, at time's it may take time to warrant a trip to certain other remote areas, and I think Scott will agree, that it pays to wait. You are paying for a quality report and a major part in the preparation of some depreciation schedules is the site inspection.
$1100 also sounds slightly expensive for a duplex!
If you require any further information please do not hesitate to post your question's or give me a call on 1300 728 726.

Best Regards

David B ]]> Property Investment - Other http://www.somersoft.com/forums/showthread.php?t=24429#post193999 Depreciator V Deppro http://www.somersoft.com/forums/showthread.php?t=23676#post191875 Wed, 15 Feb 2006 23:15:35 GMT Hi Frankly 1,

Do you have any other recommendations for who you would like to prepare the depreciation schedules?
You sound like you do not like the idea of a QS being one of the most appropriately qualified professions to prepare the reports.

The obvious tax ruling you are referring to is TR 97/25 which as Tyrone has mentioned states

27. Unless they are otherwise qualified, valuers, real estate agents, accountants and solicitors generally have neither the relevant qualifications nor experience to make such an estimate.

28. Appropriately qualified people might include:
- a clerk of works, such as a project organiser for major building projects;
- a supervising architect who approves payments at each stage in major projects and who may approve individual payments to subcontractors in smaller projects; or
- a builder who is experienced in estimating construction costs of similar building projects.

and the amendment TR 97/25A actually states that

Paragraph 28
After 'Appropriately qualified people might include:'; insert:
*
a quantity surveyor, who has expertise in the relevant type of construction;'

Would be very interested to see who you recommend!

Best Regards

David B ]]> Accounting and Tax http://www.somersoft.com/forums/showthread.php?t=23676#post191875 Depreciator V Deppro http://www.somersoft.com/forums/showthread.php?t=23676#post191211 Mon, 13 Feb 2006 06:31:11 GMT BMT also email copies of the depreciation schedules. It saves time, is easier to archive, easier to send to multiple recipients at relatively low cost and definitely not as easy to loose. We also find that the accountants much prefer a soft copy for these reasons. We actually do the reverse to Scott i.e email the report when/if requested (always give the option) and always send a hard copy of the report. Postage can be expensive but not all people have or use email. Some investors just like to hold/feel the weight of their deductions in the report. BMT reports can be extremely heavy! We at BMT regard client satisfaction as the number one priority and if that means acknowledging a joke (good or bad) we will do so. Sounds like that pipeline needs a good clean! Best Regards David B BMT also email copies of the depreciation schedules. It saves time, is easier to archive, easier to send to multiple recipients at relatively low cost and definitely not as easy to loose. We also find that the accountants much prefer a soft copy for these reasons.
We actually do the reverse to Scott i.e email the report when/if requested (always give the option) and always send a hard copy of the report. Postage can be expensive but not all people have or use email.
Some investors just like to hold/feel the weight of their deductions in the report. BMT reports can be extremely heavy!
We at BMT regard client satisfaction as the number one priority and if that means acknowledging a joke (good or bad) we will do so.
Sounds like that pipeline needs a good clean!

Best Regards

David B ]]> Accounting and Tax http://www.somersoft.com/forums/showthread.php?t=23676#post191211 Depreciator V Deppro http://www.somersoft.com/forums/showthread.php?t=23676#post188324 Wed, 01 Feb 2006 00:49:47 GMT

Quote:

Originally Posted by depreciator

Hi Patosan,
1. Tax work is a small part of the average QS job scope. Many QSs won't touch tax work - too many shifting rules. Some do it at tax time because they're getting phone calls, but because they're doing it sporadically, they're not always up to date with any ATO changes. You always want to use a QS who does alot of tax work - us, BMT, Washington Brown.
Scott

Hi All,

I would like to take this opportunity to introduce BMT & Assoc Quantity Surveyors. Firstly thankyou for the recommendation Scott, BMT & Assoc & Depreciator are actively a couple of the most professional Quantity Surveyors preparing property tax depreciation schedules in Australia. Scott has mentioned some of the details that separate us from other Quantity Surveyors who do not specialise in depreciation, and I could not agree more.

I have previously made a few personal posts, and would now like to offer my point of view when/if required as a depreciation consultant regarding any questions relating to property tax depreciation. Who knows, Scott and I may even have different views on certain topic's, and could make way for interesting debates! (eg Green Kitchens??)

As I have already mentioned I have read many threads and I understand the objection to advertising ones company before being proactive in many discussions before hand, though I thought a quick introduction was in order before we get involved.

Best Regards

David B ]]> Accounting and Tax http://www.somersoft.com/forums/showthread.php?t=23676#post188324