Age

W

WebBoard

Guest
From: Anonymous


I recently asked a real estate agent what year a property was built and he gave me a rough estimate because he wasn't quite sure. I couldn't see the age of the building written on the contract of sale anywhere.

Where do you find this information?
 
Last edited by a moderator:
Reply: 1
From: Mark Laszczuk


Firstly, why anon? What do you have to hide? In answer to your question, not too sure, maybe the local council?

Mark
'no hat, some cattle'
 
Last edited by a moderator:
Reply: 2
From: Kristine .


The age of a building is of no consequence unless it was built within certain dates, and thus eligible to be insured under the various housing guarantee or builder's warrantee schemes.

I have just bought a house, paid $35 to get the plans from the Council, only to find that two sets of plans were approved to be built, and neither was!

Your best bet is the electricity meter. It is rare to change meters, but quite common to find a date of commission on the seal tag.

A broad indication can usually be had from the date of subdivision. If the original title is dated eg 1950, and the house is similar in style to its neighbourhood, then it was most likely built within 5 years of the date of title. The history of mortgages listed on the title will give a further indication.

You could always ask the neighbours, but style, colour, window frames etc will be surprisingly accurate.

Cheers

Kristine
 
Last edited by a moderator:
Reply: 2.1
From: Geoff Whitfield


Kristine,

The age of a building can be important if you are claiming building depreciation.

If sometime in 1986 (I think) or after, you can claim building depreciation. For about 2 years, it was 4%, then 2.5% after that.

Geoff
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 2.2
From: Scott Elsom


I don't know about other towns, but in Brisbane the age of a property is often very important...it's easier to get approval to demolish a post-war house...and sometimes it's hard to tell when a house was built.

If all else fails, you can often get an idea of the age of a property by looking under the toilet seat. Toilet seats usually have a date or manufacture stamped on them.
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 2.1.1
From: Anonymous


Geoff, you are spot on! That is the exact reason I'm trying to find out the age of the building. I'm hoping it was built after 1985 so I can claim building depreciation.

There must be an easy way to find out the exact date???
 
Last edited by a moderator:
Reply: 2.2.1
From: Tibor Bode


Guys,

I just call the local council, give them the address and they tell me over the phone. It works well with the Logan Shire council and within 5 minutes I know when the property was built, which is required by the QS people.
Pre 85 there is no depreciation for the building, inly for the fixtures. Between 85 and 87 it is 4% after that it is 2.5%. I am not sure about the months, but the QS person will not it.

Hope it helps,

Tibor
 
Last edited by a moderator:
Reply: 2.1.1.1
From: Geoff Whitfield


OK, but don't get too hung up on the date.

Depreciation is on the original building cost. With no allowance for today's dollars.

A building from then may cost- who knows? Let's say $50,000. 2.5% of that is $1,250. So you might get back (if you're in the top tax bracket) about $600.

Compared with other items in the Quantity Survey, that's peanuts. Two weeks rent?

Depreciation is icing on the cake.

But if the deal is good, go for it. It could earn you many thousands.

Look at the big picture first and foremost. And don't depend on tax savings to make the deal sweet. It should stand on it's own two feet by itself- and, if you're lucky. there will be a few lollies thrown in.
 
Last edited by a moderator:
Reply: 2.2.1.1
From: Rixter ®


You can also call your local Electicity supplier and give them the meter number and they will tell you when the building was originally commissioned.

bye.gif

Happy Investing,
Rixter :)
 
Last edited by a moderator:
Reply: 2.2.1.1.1
From: Tibor Bode


Geoff,

I agree that depreciation is the ice on the cake, this is why pre dominantly I try to get the deals cash-flow positive without depreciation. But as some examples below, it still can add up to some nice sum.

Property cost 71K reno 9K, built in 1982
83 days depro last FY $2250
This FY $1531
Next FY $1128
Total over 40years $15117

Another cost 47K reno 6K, built in 1984
130day depro last FY $2531
This FY $1631
Next FY $1203
Total over 40 years $14,236

Third cost 61K, reno 6K, built in early 1985
209days depro last FY $3106
This FY $1751
Next FY $1409
Total over 40 years $16543

Just these 3 reduce our taxable income by $7881 for last FY. Even at 30c it is $2366 in our pocket, this year $4923 reduction which is at 30c is $1477. I also have some post 87 where the figures are even better.
Also just the depreciation over 40 years for this 3 properties will fully pay for the purchase price of the lowest priced and this will not be taken into consideration as a reduction for CGT calculation if I have to sell it.

I just watch the pennies and the dollars will take care of themselves.

Tibor
 
Last edited by a moderator:
Reply: 2.1.2
From: Kristine .


Yes, you're right, Geoff

My thinking is with renovation at the moment, not depreciation, which I overlooked.

Different circumstances bring different parts of the equation into focus. For me right now, hammer and paint brush in hand, age means character (if any) to match and enhance.

In another circumstance the question of age would certainly have a bearing on tax and depreciation.

Cheers

Kristine
 
Last edited by a moderator:
Reply: 2.2.1.1.1.1
From: Glenys Shepherd


Hi everyone

Excuse my ignorance. Can you get a QS report on an old property? And if you can what are the benefits if it hasnt been renovated?

Many thanks

Glenys
 
Last edited by a moderator:
Reply: 2.2.1.1.1.1.1
From: Owen .


I've just got a QS report on an apartment built in 1934. It had a very cheap kitchen and a bit of a paint about 10 years ago but it still got me about $3k depreciation in the first year.

The depreciation on plant and equipment in existing properties is calculated from the purchase price. It doesn't matter if the dishwasher is 15 years old and doesn't work, if you paid $200k for the property the value of the dishwasher for depreciation will reflect this. Worth it.

If you are looking at renovating an old property it is critical.

As a real example I recently purchased an IP and got a QS report which valued the 8 year old carpet at $4700!!! I then pulled this up and replaced it as part of a complete renovation. I am "scrapping" the old report (QS term for cancelling the current schedule) and getting a new report based on the new value of my renovation. So the $4700 worth of carpet will be returned to me in my 2001-2002 tax return and I will continue depreciating my new $2500 worth of carpet in future tax returns. Overall I will be scrapping around $20k this year in one lump sum, I increase the value of my IP significantly due to the renovation and increased the rental return.

Lump sum and cashflow. I love it.

Owen

"Gambling promises the poor what property performs for the rich – something for nothing"
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 2.2.1.1.1.1.1.1
From: Mark Pardi


The bathroom sink !!!

Usually the bathroom sink has a date on it on the underside.

Mark
 
Last edited by a moderator:
Reply: 2.2.1.1.1.1.1.2
From: Peter Henery


Owen,
Could you give us the name of your QS?
He sounds like he's right on the ball !
Thanks
Peter H.
 
Last edited by a moderator:
Top