Are Depreciation Schedules Always Worthwhile?

[Howdy Doody]

Hi all,

I was wondering whether it is always worthwhile getting a depreciation schedule on an IP or does it depend on the age/condition of the property. My IP is an older weatherboard house in pretty good condition. Is there a point where the cost of getting the schedule done is more than the benefit?

Thanks

 

[timmyboy]

Have a chat with Depreciator - also on this forum.
I recently had some done thru them after talking with them about my oldest property details and whether it was worthwhile. Good value and service was excellent.

Tim

 

[ermen]

how much does the depreciator normally charge for these schedules?

 

[want2bewealthy]

Put it this way, if your place isnt too old p[cant remember the figures] reports are usually around $500, you would normally recover that cost within the first year. definitely woth while provided the place isnt past its use by date.

 

[depreciator]

I was wondering whether it is always worthwhile getting a depreciation schedule on an IP

Nope.

Much depends on the age of the property and the quality of the fixtures and fittings.
Any reasonable provider of Depreciation Schedules will tell you before you commission a Schedule whether it will be a worthwhile exercise.
I reckon maybe 2 times a week somebody sends me some photos of their IP and I get a QS to look at them to work out whether paying for a QS inspection is viable.
When it's a pre 85 property with minimal Assets/Fixtures and Fittings i.e. not worth a QS inspection, I talk people through how they can self-assess Assets (but not building). No charge of course.
Scott

 

[steveadl]

I have DEFINITELY got a dep. rep. with my newer properties - absolutely fantastic things!

But with the older weatherboard place I just bought (quite old), all I did was sit down with my accountant and wrote down the educated estimates of the fixtures and fittings eg. water heater, oven, carpets, curtains etc. Cost me nothing, and your accountant should know this stuff.

 

[depreciator]

Yep, as Steve said it's quite acceptable to self assess the value of Assets: carpet, stove, air con etc.
The value you have to ascribe to each Asset is sort of a written-down second hand value i.e. what would the old stove have been worth as a second hand item on the day you first started renting the property out.

Scott