I'm wondering what is the difference in the different companies that does depreciation reports. BMT charge $750, Washington Brown $600, MCG Quantity Surveyors $660. From my experience I was suprise at how low the depreciation I got from BMT from one of my properties. Perhaps end of the day, they were as accurate as it can be. I'm wondering how much difference another company would calculate the depreciation as. Also, what are the amounts of depreciation you guys get for yours ? I'll share some of mine : Waterloo MUD built 2008. Bought 525k in 2008 with 270K depreciable amount. Chermside 2 bedder in block of 8 built 1989. Bought 305K in 2015 with 90K of depreciable amount Brisbane House 1960s built typical 3 bedder with bathroom and kitchen renovation and a few other renos in 2017, depreciable amount 50K How much depreciable amount would say a new 1M apartment in Sydney be ??
Impossible to answer. It all gets down to what the place cost to build when it was built and the value of the Assets.
Agree....BMT did The Block for the past few years and the numbers where huge. The numbers for say Kim and Chris $2.448m and Ben and Andy $2.401m Their sales were $2.6m and $2.401m respectively Of course there were large very high end properties with all fixtures and fittings and furnishings and sponsor feebies included. You cannot possibly compare a 1960s apartment to a $1m new build. The 60s property would have little if any Div 43 capital allowance as a start. It could be in a small block with no lifts, no fire and no significant common areas.
It's even hard to compare identical new builds to eachother. Let's say somebody pays $1m for a new flat with sweeping views of the harbour. (Impossible in Sydney, but work with me.) Now, let's say that exact same building was built in Mt Druitt where the view was of a carpark where Datto and mates do burnouts every night. The cost for the Mt Druitt apartment might be $500K. The depreciation for both properties might not be all that different because the build cost will be the same.
Anyone else willing to share what depreciable amount is on a stock standard 2 bedroom new built apartment in the Waterloo or Rhodes area would be ? They would be selling around 900k mark with gym, pool and all the bells and whistles.
In the first year at least $15K (perhaps higher) and taxpayers marginal rate would indicate the value of the benefit. ie a increased deduction of up to $6,750. Only an actual QS report can determine the true value so an estimate is of little benefit. No of units and size and scale of the dev and its finishes would all affect the amount
Paul's pretty close to the mark there. As a general 'rule-of-thumb' on a new unit the construction cost makes up circa 50-60% of the purchase price. So, if you conservatively said the construction cost was 50% ($450,000) then the Division 43 depreciation would make up around $10,000/year. In addition you would have the Division 40 plant and equipment deductions which could average around an additional $5,000/year over the first 5-6 years. After 5-6 years the depreciation would gradually taper off to around the $10,000/year mark after all the plant and equipment is written off. Again, I would suggest these numbers are conservative and could be 10-20% higher, but you haven't given us much to go on.
I guess I looking to see if anyone can share what their depreciation is for a recent (ie built in last 3 years) MUD within 15 km to Sydney. here is one that was built in 2008 in Waterloo, 2 bedroom apartment around 80sqm, with swimming pool, gym, parking, 10 levels. Bought for 525K in 2008 with depreciable amount of 268K
I was going to cite the 50%+ rule but considered a QS would say it and be far more qualfiied. The Block (BMT) reports were almost close to the final sale price and is sometimes raised by hopeful investors as a guide that all QS reports should be 80, 90% + of cost. That IMO is unlikely.
