I have another depreciation question.
The double block we are hoping to get DA for four townhouses holds two old queenslanders. At time of each purchase (15 and 8 years ago) they were very run down and we ripped out everything (bathrooms, kitchens, carpets, curtains etc). Everything we ripped out was knackered, probably 50 years old and we were left with a shell. We put in new kitchen in one, new bathroom in the other, had floors polished, added curtains. Nothing really of great cost or value like you would find to depreciate in a modern new-build.
If we get approval to build townhouses, we will need to lift and shift both houses. We will raise and slide them but not build under at this stage. We would not need to do anything to kitchens or bathrooms immediately and would look to reconnect services, batten out the downstairs and re-rent whilst we build in the middle block.
Assuming the townhouses go ahead and we end up with four brand new townhouses, would we need depreciation reports? I guess we would use the build cost figures instead?
Also assuming we decide to enclose the downstairs of the older houses, add another bathroom to each house, and maybe update both kitchens and existing bathrooms, would it then be worthwhile having a depreciation schedule done? Or would we use the build prices for the new kitchens and bathrooms as our cost base?
I'm more than happy to get a depreciation schedule on the old houses and the new townhouses, but am I right in thinking that because we are doing the building and the renovating, we have the figures we need anyway?
The double block we are hoping to get DA for four townhouses holds two old queenslanders. At time of each purchase (15 and 8 years ago) they were very run down and we ripped out everything (bathrooms, kitchens, carpets, curtains etc). Everything we ripped out was knackered, probably 50 years old and we were left with a shell. We put in new kitchen in one, new bathroom in the other, had floors polished, added curtains. Nothing really of great cost or value like you would find to depreciate in a modern new-build.
If we get approval to build townhouses, we will need to lift and shift both houses. We will raise and slide them but not build under at this stage. We would not need to do anything to kitchens or bathrooms immediately and would look to reconnect services, batten out the downstairs and re-rent whilst we build in the middle block.
Assuming the townhouses go ahead and we end up with four brand new townhouses, would we need depreciation reports? I guess we would use the build cost figures instead?
Also assuming we decide to enclose the downstairs of the older houses, add another bathroom to each house, and maybe update both kitchens and existing bathrooms, would it then be worthwhile having a depreciation schedule done? Or would we use the build prices for the new kitchens and bathrooms as our cost base?
I'm more than happy to get a depreciation schedule on the old houses and the new townhouses, but am I right in thinking that because we are doing the building and the renovating, we have the figures we need anyway?