PIA for renovations

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From: Jude H


Sorry if this is a bit thick, can I use PIA if I buy/renovate/sell (keep a few) to help me determine if the numbers stack up?

Help me on this Ian and you have a sale. Have decided to give the above method a go and see if I can make some $ this way but know the numbers are all important.

Michael your 2 bobs worth would be appreciated if you are currently using it for this purpose.

Thanks Jude

 

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Reply: 1
From: Webmaster (Somersoft)


The PIA software can certainly be used to simulate an IP which is to be renovated. The renovations are automatically taken into account in calculating the capital allowance and the property value. If you consider that say $10K worth of renovations have added $15K to the value of the property, even that can be accommodated by specifying a separate market value to that of the book value of the property. The only constraint with regard to renovations is that they are assumed to have been carried out and paid/borrowed for at either the time of purchase or at the end of any specified year (to keep the software simple, the projections are shown in whole years).