Quantity surveys for older properties

[simonjulie]

From: Simon and Julie M


Wanting words of wisdom from old hands.
Is it a practical idea to get professional detailed depreciation Schedule for 30+year old properties?
In the past my accountant has done them as I added and replaced fittings and fixtures.
Any thoughts or experiences appreciated.
Regards
Simon

 

[WebBoard]

Reply: 1
From: David Grounds


I have had a quantity surveyors look through properties aged in excess of 50 years. Charges invariably amounted to less than the value of tax gain in the first year alone. As a result I would ALWAYS have a quantity surveyor do his thing with my IPs.

 

[Waverlybay]

Reply: 1.1
From: Waverly Bay


Couldn't agree more.

My QS has gone in on some of my properties which are as old as 50 years and still found depreciation claims. To date, the tax savings have outweighed the cost of getting the QS reports.

The other advantage of getting an accurate assessment of the tax depreciable claims is that once the 30 year old plus property is renovated, the cost of your depreciable items are immediately written off for tax purposes.... and the depreciation clock then restarts on your renovations (to the extent the renos are depreciable items as required under the tax law).

If you are concerned about whether a QS report will justify the costs, get the QS to do a preliminary assessment for you - free of charge. I use Herron Todd White in Sydney and they have always been more than happy to do a free-of-charge prelim assessment on my properties.

Cheers

Waverly

 

[simonjulie]

Reply: 1.1.1
From: Simon and Julie M


Thanks David and Waverly
We are only relatively new at this great game and need to learn as much as possible.
things like this seem fairly obvious however I believe in the power of second opinions.
regards
Simon

 

[WebBoard]

Reply: 1.1.2
From: GJC -


Can I pursue this line a bit further please. I have 2 IP's (Typical 3 B/R houses) and have organised a schedule of depreciable items myself for each at the time of purchase (& had each annexed into the contract - for tax purposed on accountants advice).
As far as I'm aware I've got everything that appears to be claimable as per the typical "tax Office schedules".
I've often wondered what typical "extras" a Quantity Surveyor would be picking up that I may be missing that makes it worth while engaging them on a basic house purchase?

Anyone care to enlighten me with some examples & info please????

GC

 

[DaleGG]

Reply: 1.1.2.1
From: Dale Gatherum-Goss


Hi

A QS will identify the cost of construction of the building and in doing so identify any tax deductions available if it was built after 1985.

They will also identify any improvements that have been done since such as extensions, renovations, carports, driveways etc etc.

It's this second group that might be more worthwhile for an older property. But, it's still a judgement call when you know the property that you're dealing with.

I hope that this helps

Dale