Qns for a first time Quantity Survey

[Owen]

Originally posted by Michael Croft
OK Owen, here's the scnario -

I use a QS and they ask me if I have a receipt for the new item; I answer 'no'. The QS then assigns a value to the item which is then used for depreciation purposes.

Regards, Michael Croft

This question was answered in the Q&A section of the API magazine too. The response was "Why can't you ask for another copy of the receipt?".

The whole gist of it was if you own the property and have replaced an item, there must be a cost. If it cost you $1000 then you get to depreciate that amount, if it cost you $5 you get to depreciate that. I'll check but I'm pretty sure the author (there guy from DEPPRO) said they can only estimate value on a new purchase. If it's a repair or reno then they have to use the real value.

Who do you use Michael because that's obviuosly not the case for you? I use BMT & Assoc. They are excelent so far but I have yet to get them back in post-reno which is why this is of such interest to me. I will check it out with them but I can bet they will say to adjust the existing report using my receipt values. I'll get back to you on what the answer is when I say "I have no receipts, can you please estimate values".

 

[Michael Croft]

Hi Owen,

You'll forgive me if I don't answer your question about who I use for my QS reports - you are quite right about the cowboys out there and the potential abuse of the system.

The rules do apply to all, but it is in the interpretation that lawyers have a field day One must know what the rules are before one can bend them to one's will - with out ending up on the wrong side of an audit! And yes I have had an audit and came through with flying colours, so statistically I should be right for a while.

Regards, Michael Croft

 

[Owen]

Originally posted by Michael Croft
One must know what the rules are before one can bend them to one's will

You hit the nail on the head here. Your tag line says a lot too. I'm certainly getting better at folding my own parachutes and you have helped a lot in that regard.

Thanks for the chat

 

[Luke]

Back to the original subject...

Thanks everybody for your engaging responses to my post.

THe inspection happened today, quite quick - 20-25 minutes for my 3br/1ba house. The inspector seemed knowlegeable, and very efficient. I was surprised how little he did ask me.

Unfortunately I had said a little too much to the receptionist who took my booking, (Before I posted this qn - darn!)
However it sounds like it will still be quite a good outcome. Bonus: Although it's a month to wait for the report, they bill me with the report. That's nice, and different from the usual 100% upfront sort of approach in the IP game.

Thanks again everyone, I'll let you know when I get the report.
Luke

 

[Desto]

Egad! I just read in a previous post that there is no point in getting a depreciation schedule done on a house if I've not actually paid for any renovations or fixtures that are part of the IP I just purchased.

I was under the impression that if I buy an IP it will clearly have items that will deteriorate over time and will have to be replaced. And having purchased that IP means that I have paid for whatever fixtures and other items that depreciate.

So I just wasted $400 to have a QS do a report for me?

If that is so, this is truly depressing. I could have used the $400 for more valuable pursuits.

What is more depressing is that I wish DEPPRO whom I engaged to do the QS for me would have informed me of the futility of this report in my particular case. Buyer beware and get fully informed before jumping in and handing over money!

I dread to think what else I don't know! Bugger...

 

[Bobq]

Desto,

Either you read wrong, or the post was wrong.

You can claim for the depreciable items in the house (light fitting curtains carpets and the rest).

Odds are that it's money well spent ( and if deppro can't get you back their fee, then you probably should demand your money back!

So put on your happy face again.

 

[Desto]

, thanks Bob.