Is it worth a quantity surveyor?

[thetom]

I have recently purchased an IP property 3 bed 1 bath built pre 1985 with no recent improvements that i can tell of apart from new carpet, paint and oven.

I am also under contract on another property exactly the same.

I just dont know whether its worthwhile getting a quantity surveyor out or just do the cheapy with the pictures. Is there going to be enough extra deductions to warrant the extra costs?

Cheers Tom

 

[Television]

I have recently purchased an IP property 3 bed 1 bath built pre 1985 with no recent improvements that i can tell of apart from new carpet, paint and oven.

I am also under contract on another property exactly the same.

I just dont know whether its worthwhile getting a quantity surveyor out or just do the cheapy with the pictures. Is there going to be enough extra deductions to warrant the extra costs?

Cheers Tom

When were the Renos done? Are you sure that everything in the house is older than 1985? Window Coverings? Light Fittings? Anything out in the back yard? Smoke Detectors? Security System? Any in wall AC? Ceiling Fans? New Mailbox?

I recommend you get a quantity surveyor out there, makes it easier for them to make a judgement on the age of something vs. a photo.

Disclaimer: I'm a QS who works for a Depreciation Company. They've taught me to look for every possible item/deduction possible.

 

[syba]

Based on what you've said, generally it wouldn't justify a site inspection. If the kitchen and bathroom are pre-1985 (apart for the oven) and there hasn't been any house extensions there isn't much you can get.

The only capital works would be painting - say $4k cost at 2.5% = $100/year. Oven and carpet you should be able to reasonably guesstimate an approx. value if they are new. All other depreciable assets (eg blinds, curtains, garage door motors, light fittings, hot water unit, etc) will have a depreciable value you can claim no mater how old they are, but if quite old, the value may be quite low.

The biggest value items you can claim (based on your description) is the carpet and oven and could be around $1000 deduction in the first year (guessing - will depend on your actual item, age, etc) so if you are not confident of valuing itself, get a QS to go out there and do a report - would be still worthwhile. Alternatively they may be able to do it cheaper via providing photos and not inspecting (relying solely on photos and you providing a m2 area of carpet).

 

[Feradd]

BMT will do a depreciation report and if the tax benefits of depreciation are less than their cost then they will not charge you anything. If the tax benefits of depreciation are greater than their cost (around $700) then they will issue you the report.

 

[macca446]

I have recently purchased an IP property 3 bed 1 bath built pre 1985 with no recent improvements that i can tell of apart from new carpet, paint and oven.

I am also under contract on another property exactly the same.

I just dont know whether its worthwhile getting a quantity surveyor out or just do the cheapy with the pictures. Is there going to be enough extra deductions to warrant the extra costs?

Cheers Tom

Hi Tom,
I did a purchase late last year and home was ex miners cottage probably early 1960 or less but was mainly a owner occ they did improvements like paint inside and out,carpet,shower and not much more than that,I too was not going to bother but ended up getting a schedule done by pictures only which cost me $330 and although return not great it will se me get $1500 down to $1000 per year over the next 10 years so without much effort it is worth doing I feel. Hope this helps,
Cheers

 

[depreciator]

BMT will do a depreciation report and if the tax benefits of depreciation are less than their cost then they will not charge you anything. If the tax benefits of depreciation are greater than their cost (around $700) then they will issue you the report.

Everybody has a guarantee these days.

A good QS will tell you before you pay them and before tenants get mucked around whether a job is worth doing.

 

[thetom]

Thanks for all of your help. I guess my next step is to give Depreciator a call.

 

[depreciator]

Do you have any photos of the place? Any QS will be able to tell from them whether it's worth doing and how much depreciation they might find.

 

[thetom]

Yes i took a lot of pictures just before the tenant moved in for if o decided to do the picture method.