Hi,
I was wondering if anyone can tell me how a Quantity Surveyor establishes the building costs on a residential property when this information was not available at the time the property was purchased (i.e. a 5 year old property)?
Do they have some sort of chart that tells them that a property with X number of rooms in the year the property was constructed cost X amount to build? Or is there some other method?
I am interested because I want to establish whether it is worthwhile purchasing a investment property without having to spend $500 or so preparing a depreciation schedule to find out.
Hi
If the property has been used for investment previously then you should be able to get a copy of the depreciation schedule from the current owner.
If not then your accountant should be able to help you put one together from a list of fixtures & fittings.
The property is only 5yo so there will be plenty of book value left on most items.
Yes I understand this, by the way I have depreciation schedules for my other investment properties, which I have owned since new.
My question is, how are the building cost determined if they are not known (lets assume that this hasn't been used as an investment previously)? I imagine this would be especially useful when establishing whether purchasing a property is a good or bad deal.
Some of the savvy investors on this site should be able to tell me how they work this out.
good question i asked my quantity surveyor this last time i spoke to her. she said deduct the land value (this is on rates notice)off the purchase price multiply by 2.5% to get the capital allowances.bit hard if you haven't got the section 32. estimate the value of plant (fittings and fixtures as new) and depreciate over life. not very accurate i know but as close as your going to get. i look at my other schedules to try to work plant out. hopefully someone reading this will have a better way. i also use margaret lomas software which is free to download as long as you have a barcode from one of her books (library) this is really quite good as you fill in property type purchase price and year built and it comes up with a figure which is fairly accurate.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
