Hi Everyone
I'm interested in buying my first IP and I've got a couple of questions regarding estimating the building/capital depreciation. I need this to work out if this property will be close to being +ve cash flow (attractive) or -ve geared (not so attractive for me)
a. How do I confirm the REA's claim that it was actually built in 1990 (since if it was built prior to 1985 there is no depreciation available). It is strata titled so there should be other capital works that can be claimed (such as common driveway)
b. How do I confirm the amount of the depreciation if I don't know the building costs back in 1990? I seriously doubt the REA has that (although I haven't asked).
c. Is this something I should be 100% certain on before making an offer? ie do most of you out there get a quantity surveyor on site before making an offer
Any advice will be helpful.
Thanks.
I'm interested in buying my first IP and I've got a couple of questions regarding estimating the building/capital depreciation. I need this to work out if this property will be close to being +ve cash flow (attractive) or -ve geared (not so attractive for me)
a. How do I confirm the REA's claim that it was actually built in 1990 (since if it was built prior to 1985 there is no depreciation available). It is strata titled so there should be other capital works that can be claimed (such as common driveway)
b. How do I confirm the amount of the depreciation if I don't know the building costs back in 1990? I seriously doubt the REA has that (although I haven't asked).
c. Is this something I should be 100% certain on before making an offer? ie do most of you out there get a quantity surveyor on site before making an offer
Any advice will be helpful.
Thanks.