Depreciator V Deppro

[lino28]

Just looking around for some one to complete a depreciation schedule on our IP on the Gold Coast which was built in 1986, renovated in 2000.

Deppro want $495 inc.
and
Depreciator want $715 inc.

How do these prices vary so much?

Comments on both companies?

Thanks

Tye

[Rixter]

Tye,

Ive been using Deppro for a number of years now going back to when they were formerly known as HTW.

I have a portfolio spread across WA & Qld. Deppro have come out and inspected the properties, taken measurements, contents details & photographs then emailed them to Paul Bennion the Director & QS in Brisbane. Paul then completed the reports and posted them direct to me.

All reports have been completed within 2/3 weeks of commissioning and I have been very happy with the results & quality of them.

Sorry, I cant comment on Depreciators schedules as I have not commissioned Scott before but Im sure if you contact him direct yourself he would be more than happy to discuss your situation with you.

Cheers

[redwing]

Originally Posted by Rixter

I have a portfolio spread across WA & Qld. Deppro have come out and inspected the properties, taken measurements, contents details & photographs then emailed them to Paul Bennion the Director & QS in Brisbane. Paul then completed the reports and posted them direct to me.
Cheers

Rixter,

Does this then mean the Deprro guys who attend the property are not Quantity Surveyors?

REDWING

[Rixter]

Redwing,

His local office agent came out here in Perth and performed the onsite works. The last one I purchased in Perth was 4 years ago so Im not sure what their proceedures are nowdays. Cant comment on my recent years interstate property purchases tho as I havent been onsite to meet them.

Cheers

[obiwan]

I recently used the Depreciator for a property in Perth.
If you mention to them that you are a member of this forum they will do the schedule for $650

[redwing]

Thanks Rixter, I was reading an article about DEPWEST and it made me wonder about some of the people who conduct the initial works...albeit, that could apply to many companies and industries


REDWING

[Mry]

As a tax agent, I have prepared many tax returns for property investors. I have only had one client with a Depreciator report but the report kicked major tax office butt. Very professional, all the bases covered properly.

I have used Deppro. They are one of the cheapest on the market and most of their reports are generic rather than specific. They don't seem to but their best effort into it but they are ok.

Napier and Blakely aren't too bad.

For those tempted to go with an independant QS, for God's sake don't. The last few didn't even do the maths right and my eyebrows raised at some of the things they were claiming.

[Michael Yardney]

Originally Posted by redwing

Rixter,

Does this then mean the Deprro guys who attend the property are not Quantity Surveyors?

REDWING

Most of the companies do not use "quantity surveyors" to do the initial property inspection, but the report must of course be signed off by a QS..

A bit like the book keepr in your accoutant's office doing most of the number crunching or the law clerk doing some of the work for your solicitor.

I have found Deprro efficient - they have done reports for me personally and for clients.

[depreciator]

Yes, our prices are a tad higher than some in the market place. (They're also lower than some.)
Looking around for the cheapest supplier of a tax related service doesn't make much sense to me. It's a bit like looking for the cheapest accountant you can find.
Our costs are higher in part because 98% of our inspections are carried out by Quantity surveyors or estimators. Tempting as it is, we don't have an army of unqualified information gatherers out there. Most reputable suppliers do in fact use a QS to carry out inspections.
We are up to date on the ever changing ATO rules and we follow the AIQS (Australian Institute of Quantity Surveyors) 'Best practice' expectations.
I have never met MRY, but I am gratified that he liked our reports. Around 60% of our work comes to us via accountants who similarly have confidence in our reports.
Scott

[lino28]

because our IP was built in 1986 and is approaching the 20year mark, will the depreciation of the initial construction stop this year?

[Ross]

At 2.5% p.a its over 40 years not 20 years ( unless your claiming 4% - tourism type property )

[Sultan of Swing]

As it was built in 1986, its claimable for 25 years at 4% a year instead of 2.5 % after 16th September 1987.

I read somewhere that, if it's only been claimed for, say 10 years as an IP, that you would still have the balance, in that case 15 years to go. Maybe a forumite accountant could confirm that.

[lino28]

ahh just found out it was built in July 1988 - it has never been rented out before we purchased in 2005.

[geoffw]

Originally Posted by lino28

ahh just found out it was built in July 1988 - it has never been rented out before we purchased in 2005.

The bad news is that you only get 2.5% depreciation. The good news is that your depreciation only runs out in 2028 (at 4% it would have run out in 2013).

[depreciator]

The important date is 'construction start date'. So Lino when you say your property was 'built in July 88', does that mean construction finished then? If contruction started before Sept 87, you can claim depreciation at 4%.
Yes, establishing this date will be problemmatical.
And as Geoff wrote, if it falls into the 2.5% category, at least you'll be depreciating it for some time.
To answer your question, SOS, what a previous owner or hasn't done doesn't come into it unfortunately.
As an aside, lots of investors look for properties built in the 4% window - July 85 to September 87. The depreciation left to claim on these properties is less than one built in, say 88.
An 87 property would have roughly 7 years left at 4% = around 28%.
An 88 property would have roughly 23 years left at 2.5% = around 55%
Scott