Depreciation report for old Apartment ?

I have a small 1 bdroom IP, in a brick apartment complex built in the 70s, held for about 6 years. It has simple fixtures, no furniture, laminate floors and minor cosmetic reno over the years.

Would it still be worth getting a depreciation report done? I'm probably going to sell it few years down the road if the market recovers. It was my main residence for about a year.

maybe some thoughts @BMT Tax Depreciation ?

 

Talk to scheduler, they'll be able to give you an indication if it'll be worth it, in most cases, benefit vs. cost of report is generally a yes even for older properties.

 

I always tell clients the same thing. Until a QS tells you its not worth getting a QS schedule you should speak to a quantity surveyor. That apartment may be unrenovated in your eyes but if the strata has done capital works to even common areas in the past 20 years you could miss it. The oven is how old ? The curtains ?

 

yes okay, I'll reach out to the surveyors.
thanks

 

When you say 'minor cosmetic reno', are we talking perhaps some paint and benchtops? Doesn't sound like there is much in this one. Send me some photos and I will have a better idea. A few photos of the outside of the block would be good, too.

 

Sorry, been mostly out of the office for the last couple of days, but my response would pretty much have been the same as Depreciator's. If you'd like to PM me pics or the address so I can look up any old listings, etc., I can see what else I might be able to contribute.

As Paul said, there's often plenty of (pleasant) surprises to be had.

 

@BMT Tax Depreciation @Depreciator
Does the strata committee normally organise a quantity surveyor to do their thing or is it up to individual units to organise?

 

It's timely that you ask that because I'm dealing with a similar query today from a strata manager. They want a report on the common area only for the body corporate. The thing is, the individual unit owners claim depreciation on their share of the common area and we've already completed schedules in the building, which means that doing a common-area-only schedule for body corporate members would lead to a double-dip situation (for those who are already claiming depreciation). And then why would others want to claim on the common area but not on their unit? My suspicion is that it's based on a misunderstanding on how things work.

In the past, I've handled similar queries and it hasn't ended well. This is no offence to anyone but, when doing it from a strata/body corporate point of view, is a bit like herding cats: everyone has to participate at the quoted price, and of course that would exclude any owner-occupiers who can't claim depreciation.

So, short answer: it's best when individual owners organise their own schedule it but we often arrange a bulk deal depending on the number of potentially interested parties.

 

I have seen people present me with a BC qty surveyor report after major levies and then they want their %. I explain that isnt how its works. The report omits their own unit and in fact the report for the owners may even need to be updated to write off a element of the former cost (eg balcony & window replacements) as well as incorporate a new element. I tell them to take the new report back to their old QS to update their report. The stand alone report is unreliable and not issued to the owner. It may be like me copying mine and sharing a copy with a neighbour. The ATO could deny the deductions.

I believe in each case its based on a person who thinks that one report shared is cheaper than each owner. It will be but it will also have some inconsistencies.

 

Thanks. This was helpful. I called your guys and other owners in my unit have used you before, getting about $2500-$3500/year.

The other useful thing is that the individual report can be updated if there are capital works performed subsequent to the initial depreciation schedule similar to what Paul mentioned.