Is there any point in hiring a QS for the likes of a 50yo weatherboard IP worth $100,000 with few improvements or would it cost more than it was worth?
Quantity surveyor for 50yo property?
- Thread starter possumcreek
- Start date
Ms Jade said:I got two QS reports done for 40 yr old houses earlier this year - 1 timber & 1 BV. Result was $14,000 + for one and $18,000+ for the other worth of depreciable items.BTW, it was through BMT & Associates.
Cheers
Woh!, that's impressive. But surely these properties were worth more than $100,000?
Aceyducey said:
The building can no longer be depreciated and I can't see much else worth depreciating. Sure I don't have a trained eye but the kitchen is original, the bathroom was done a long while ago and there's other bits and pieces improved but nothing much of value.
Possumcreek,
That's precisely why you hire a quantity surveyor - you're not an expert.
Take a long look at your own comments....you've questioned the experiences of another person with an assumption (over $100,000 in value) & now defined your own eye as as good as an expert's with 30 years experience!
Stop assuming
Cheers,
Aceyducey
That's precisely why you hire a quantity surveyor - you're not an expert.
Take a long look at your own comments....you've questioned the experiences of another person with an assumption (over $100,000 in value) & now defined your own eye as as good as an expert's with 30 years experience!
Stop assuming
Cheers,
Aceyducey
Thanks Acey, Mrs Jade.
I'll get right onto it!
I'll get right onto it!
I recently got BMT to do a 50 year old house that has been converted to 3 1BR flats. They assure me that it will be worthwhile. Still waiting on the report.
A word of warning to all investors that i look at quite a few QS reports each week and to hazard a guess have found that at least 50-60% are wrong in some way.
Wrong rates, wrong classifications or simply wrong pro rata calculations.
Rest assured that the ATO will be looking at QS reports closely this year and ultimately it will be the taxpayers responsibility.
Have fun
NickM
A word of warning to all investors that i look at quite a few QS reports each week and to hazard a guess have found that at least 50-60% are wrong in some way.
Wrong rates, wrong classifications or simply wrong pro rata calculations.
Rest assured that the ATO will be looking at QS reports closely this year and ultimately it will be the taxpayers responsibility.
Have fun
NickM
Hey what are you guys paying to get a survey done. Have been quoted two figures $330 and $600 each for 3 properties. There is a flight involved but many others will be using thier service. The cheaper one is new to this type of work but I dont know about how good the other is. Homes are 30yr old bla blah blah. Pay for what you get etc but am wondering what fees you other guys pay.
I've just paid DePPro A$ 440 to have a schedule done on a 1922 fed IP.
Tenants advised they took approx 15 minutes, came in took alot of photo's and left.
The time taken isn't a criticism as I've not seen the report as yet, and work will be involved in the analysis of the photo's no doubt.
Rgds,
Ralph
Tenants advised they took approx 15 minutes, came in took alot of photo's and left.
The time taken isn't a criticism as I've not seen the report as yet, and work will be involved in the analysis of the photo's no doubt.
Rgds,
Ralph
I've used BMT for two of mine (both built late 80s/early 90s). The cost was $440 ea and I'm happy with the service (they didn't visit - I took photos & filled in a comprehensive checklist and sent this to them).
No 1: 3br villa purchased 2003 for $92k: Depreciation $45.9k
No 2: 3br duplex half purchased 2004 for $112.5k: Depreciation $57k
Is this practical for pre-85 homes with no building depreciation? Div 40 depreciation claimable (excluding Div 43 for building) was as follows:
No 1 villa: $10k
No 2 duplex half: $11k
With the prime cost method, the amount of annual deductions starts off at over $1k and falls to around $700 in a few years.
Thus even if you only paid a 30% marginal tax rate, you should get the QS fee (which itself is tax deductible) back in the first year or two.
For my type of IPs the average claimable is about 50% of purchase cost if post 85 or 10% of purchase cost had the IPs been pre 85. I'd like to say that this high proportion of depreciable assets to purchase price tells something about the bargains that these were, but realistically it has much more to do with the small land value component accompanying both IPs!
Regards, Peter
No 1: 3br villa purchased 2003 for $92k: Depreciation $45.9k
No 2: 3br duplex half purchased 2004 for $112.5k: Depreciation $57k
Is this practical for pre-85 homes with no building depreciation? Div 40 depreciation claimable (excluding Div 43 for building) was as follows:
No 1 villa: $10k
No 2 duplex half: $11k
With the prime cost method, the amount of annual deductions starts off at over $1k and falls to around $700 in a few years.
Thus even if you only paid a 30% marginal tax rate, you should get the QS fee (which itself is tax deductible) back in the first year or two.
For my type of IPs the average claimable is about 50% of purchase cost if post 85 or 10% of purchase cost had the IPs been pre 85. I'd like to say that this high proportion of depreciable assets to purchase price tells something about the bargains that these were, but realistically it has much more to do with the small land value component accompanying both IPs!
Regards, Peter
