QS report from developer?

[VCDenton]

Hi everyone

We are going to settle on a OTP property soon and I heard before that we can get the deprecation report from the developer as they wouldve already done it anyway for their tax purpose, is it true? has anyone had any experience?

 

[Mry]

From memory, they have to provide you with the information for you to prepare a report, but rarely does anyone press the issue.

 

[Neil Richardson]

VC

The developer often will not have done a detailed depreciation schedule if they hope to not hold any stock after construction has been completed. (Generally their aim)

They may have done some indicative schedules for marketing purposes, but if you haven't seen one yet, then chances are they didn't do one.

So you might be on your own to have one completed.


Regards

 

[depreciator]

As Neil said, you might be on your own.

But with most big developments a QS company will have been in the picture - the banks often want them involved. If that is the case, that QS company will have the information needed to produce a Depreciation Schedule. They will often offer them at a reduced fee because they have all the costs. This is the case if you buy, for example, a Meriton property.

You need to act on this before you settle and tell the vendor that as you are an investor you are expecting a full Depreciation Schedule specific to your lot. Do it settlement, because once you've got the keys you really will be on your own.

Scott

 

[damacc]

Scott,

Would a depreciation report from a builder be done at the builder's costs not the costs that the person would have to pay (i.e. retail)?

Do large companies ever give their purchasers depreciation reports?

 

[depreciator]

You essentially pay 'retail', so the Depreciation Schedule should reflect that.

I doubt whether any big developers give away Schedules, but they would be available at a good rate if the project is large. I think Central Equity used to provide some useful figures on a one pager for free.

Scott

 

[damacc]

Thanks for the answer Scott. Learn something all the time.