Share your most recent visit by the depreciation fairy for a recently acquired IP. Property: Recently renovated (by former owner) 70's era 3-bedroom QLD highset with double garage, rumpus. I've had approx $10k of work completed after settlement. IP settled on 23/6. Depreciation: Depreciation will be $7.1k in year 1 ( diminishing value ) or $5.8k in year 1 ( low value pool ). Your estimate: This is way above the estimate I used for cashflow on this property ( I used $3k as an optimistic figure ). Helps that the property had kitchen / bathroom renos as well as numerous other improvements before I bought it.
Our most recent... Feb 2015 purchase, mid April settlement. Property: 2x detached villas on a single Torrens title block. The site is approved as a dual occupancy. Front is 3/1/car space built circa 1950s, rear 2/1/car space built 1995. Front villa has a 90s kitchen and bathroom and had new flooring done by the vendor to sell (could still smell the new oil on the floorboards when we purchased and all bedrooms have brand new carpet). All I've done since purchase is replace the locks and install a water meter on the rear villa. Depreciation: I use the diminishing value method... First year $3.2k (is a very short year for plant and capital being mid April settlement, good year for low value pool) Second $7.7k Third $6.1k Aren't depreciation fairies wonderful!
Both villas are on the one report so my quoted figures are for the site rather than a specific villa.
Agreed have used bmt and they have been awesome on all our pre 1970s properties.. Kinda feels like free money ( after the cost of the report)
First property purchased brand new had some furniture and some tvs to go with the house when on rent almost knocked of my chair when I saw a nice 14k on deprecation
