Hi i have some questions that hopefully someone can help me with. My partner and i own a 2 bed, 2 bathroom unit that we currently live in. We want to rent it out at the end of the year and go travelling and are hoping it can nearly pay for itself when we are gone, when we count in depreciation etc.
Monthly repayments are approximately $2300*12 = 27600
Body corporate – $3000
Rates – $1200
Weekly rents would be $400 * 52 = $20800Losses – $8300
We would rent it out furnished and are wondering how we would calculate the depreciation for this place. The unit
is approximately 6 years old.Any other tips, advice would be most welcome. Thanks in advance.
Set.
setehk,
Seek the services of a quantity surveyor to do a depreciation schedule. This will give you all the details you will need.
JLDon't bank on 52 weeks worth of income.
Management fees for agent?
Landlord insurance?
Repairs/Maintenance costs?Was a depreciation schedule provided when you bought the unit (if purchased new)? This will be a good starting point for any QS.
Is the current loan P&I or IO?You will need to make up the shortfall between net income and expenses (it doesn't fall from the heavens in your absence – at least $150 pw).
you could probably claim 2.5% of the building cost as depreciation per year. Then you can claim the depreciation of fittings such as lights, carpets, curtains etc and you will be able to claim certain items of furniture, maybe full cost or depreciation depending on what the item is. it would be well worthwhile to get a QS in.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
It will all depend on how old the building is as to the rate of Building Write off you can claim.
It could be Nil / 4% or 2.5% of the original construction cost.
Richard Taylor | Australia's leading private lender
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