Depreciator review

+1 for Depreciator, used them a few times now

 

hey everyone,
new to this forum, and about to turn my property into an IP - and rent it out.
Was looking for some reviews on tax depreciation companies, and landed here

I'm amazed at the amount of positive reviews and recommendations for Depreciator - guess I found who I'll be going with!
Will ring them up and get it started.

 

My husband and I are in the process of comparing quotes for our Sydney studio and will either go with Stuart at BMT or Scott at Depreciator.

 

A colleague of mine has recommended Depreciator for when my IP is built. She said she used them based on her tax accountant's recommendations. Based on these reviews and hers, I think I'll get in touch with them when the time comes.

 

Have any of the users of depreciation reports asked a tax adviser who they would recommend based upon experience and comparision and also some issues with some companies? There are reasons I sometimes recommend BMT over Depreciator and sometimes Depreciator or others over BMT.

I have also seen many "cheap reports" which people say are fine and aftre 25+ years I have along list of signs for a bad report. Price is usually the first issue. Low price often means poor service or a poor report - desktop perhaps ? Many cheap reports stop at 10 years.....I saw one recently that stopped at 5 years that cost $400. Also didnt have any pooling to brig forward deductions and was only prime cost. It was useless. It was redone and not used and the numbers were quite different. The original QS had even missed a extension that had been added. The new QS found it in a council review for development approvals.

 

Just out of curiosity, what are the different circumstances where you recommend one over the other?

 

Generally, for new construction reports I would strongly recommend BMT and Washington Brown. For existing residential property that benefit tends to equalise so that a lesser cost provider eg Depreciator and Duotax etc may save a small amount. BMT have a large team and there is a reason they are large....They do some major projects and a lot of volume. BMT can be very good with boots on the ground. I have seen many people look for QS reports for a new apartmnet to find BMT or WB did the builder cost estimates for a lender and they can easily finalise that for a lower cost as they know most of the primary construction cost and just need to consider the final interior and common area fitouts. In Melbourne Depro occassionally gets a gig with alarger project too. I usually suggest the owner ask the builder who they used.

Note : I also want to make it clear. This thread was originally about depreciator. I am not saying depreciator have any issues of concern.

 

Thanks all.
Depreciator are great and very easy to deal with - I have that on good authority.
Good advice with new apartments to find a QS who has perhaps already done Dep Schedules in that building. Like BMT and WB, there are many buildings where developers have involved us and we offer Schedules in those buildings at a reduced fee because we have many of the costs.
Scott

 

Yep, agreed Paul.
It can be beneficial to get a report done by the same company that does the Pre-funding report for the lender.

- in saying that, things can change dramatically in the time between the pre-funding report and the 'as built' project.

I'm currently working on the pre-funding reports & ongoing Progress Payment reports on 4 high rise appartment buildings in Brisbane. All 8+ storey.

All started out as higher-end Investor geared projects.

But it's unlikely I'll get many Tax Depreciation gigs out of them.

...as the developers all changed course and are now targeting the high-end Owner Occupier market.

This made the Pre-funding report larley irrelevant as these ones are now all built to very high spec and the costs per square metre are enormous.

Yet when they were IP geared appartmentss the costs were very trimmed down.
- for maximum developer profit and maximum investor desirability.

I guess what I am trying to say is this...

If an investor engages the same QS who does the Pre-funding report, the depreciation results could be very under cooked - when compared to a QS unfamiliar with the project, but who does an extensive onsite survey.

Nothing can get a client more dedcutions than an exhaustive onsite survey by a very experienced QS (and I don't mean one of the gig-economy type staff many firms now use).

Not throwing any shade on any company here. Just food for though.

Cheers
W

 

This is a fair point, and one of the reasons we will always visit a completed development, regardless of what pre-completion work we have done.