Depreciation Report on old unit - is it worth it?

Hello

I bought a 1 bedroom unit in Ballarat Vic, and it must be 50 years old. It is currently tenanted and will remain so.

A depreciation report costs around $500?

What exactly will the QS put on the depreciation report? As far as I can tell nothing would qualify for depreciation, except the hot water system?

I don't see the point in spending $500 - $600 so I can get a tax refund of $304 (0.38x$800).

Any advice? Thanks.
 
If there have been any other improvements you might be surprised what a QS will find.

Items like tapware, etc. Other fittings such as air conditioners and heaters, too.

Some websites, like www.washingtonbrown.com.au, provide a basic calculator that may help you decide whether it's worth getting a survey done.
 
I do Depreciation Reports for Depreciator, who is also active here as, err Depreciator real name Scott.:rolleyes:

I have completed a few in Ballarat and the last one was a home built in 1880. It got huge depreciation due to complete renovation in 2007. Only an expert assessment could work that out.

So points to consider:

has
  • the unit or body corporate had any recent renovations? fire systems especially
  • has it got new appliances, especially big ticket items like AC, heating, etc..
  • has it been repainted, inside or out

You can contact Council and ask for any record of approvals to works and also ask the Strata Manager. They should have records althought Council is hit and miss, it did not have the reno for instance.

I hope this helps and feel free to PM me for more. I am often around Ballarat.

Peter 14.7:)
 
I don't see the point in spending $500 - $600 so I can get a tax refund of $304 (0.38x$800).

I don't see the point either. If you happen to have any photos of the place, I'll tell you what you might get in depreciation before you do anything.
 
If it's only the hot water system, it's obviously not worth it.

On the other hand, I've never seen a case where a report didn't find enough to justify the expense. They almost always have more on there than you expect.
 
There will be the hot water unit.
Presumable a stove/cooktop?
Floor coverings?
Blinds/curtains?
Smoke detectors?
Exhaust fan?
Sometimes these old places have common laundries with shared machines.
 
Scotty,

Wouldn't he be able to claim a share of any owners corporation improvements done in recent times?

Car park work, new lighting, lifts etc?

Cheers,
 
Yep. Any in unit or common area Assets or improvements (the latter depending on the date).

I'm guessing a one bedder in Ballarat is pretty basic.
 
Still even if it only $500 a year it is every year for long time.

IMO and experience a 50 year old unit would have to have new PC items as Scott lists ( stove, hotplates, HWS only last 10 years) also would have added a smoke detector system, been repainted (you would hope)

Peter
 
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