Depreciatable portion of an IP

[Nanuq]

hope you guys can help me with this.
I am looking to buy a brand new apartment as an IP and would like to get an idea of how many % of the apartment are depreciatable over the 10 years period? I know this valuation are usually done by a valuers, but I am sure alot of you guys here would've done it before.

The value of the property I will be looking for is around 350-450k. But any price range are welcomed as I just want to get a general idea at this stage.

many thanks

 

[WashingtonBrown]

Well the one i signed off on this morning! for a purchase price of $450

Had a bld cost of $236k

And approximately 70k or 30% written off in the first 10 years.

Hope that helps.


Regards

 

[depreciator]

Just a thought, Nanuq, if it's a brand new building there is probably a QS involved in the project. Whoever is selling the apartment should be able to provide depreciation estimates (which may be a tad over inflated).
Scott

 

[WashingtonBrown]

Just a thought, Nanuq, if it's a brand new building there is probably a QS involved in the project. Whoever is selling the apartment should be able to provide depreciation estimates (which may be a tad over inflated).
Scott

Or underinflated if the QS had any sense!

Regards

 

[Nanuq]

thanks for the info.

how come only 30% are written off in the first 10 years?
I thought 100% of the bld cost are depreicable over the 10 years period.

Well the one i signed off on this morning! for a purchase price of $450

Had a bld cost of $236k

And approximately 70k or 30% written off in the first 10 years.

Hope that helps.


Regards

 

[WashingtonBrown]

Hi

No - the building costs take 40 years to be fully written down.

You can claim the hard building costs (ie the bricks concrete etc) @ 2.5% per annum for 40 years.

Other items, such as carpets ovens etc, have varying rates depending upon their effective life.

Regards