Forum Replies Created
Depending on the property and the sort of information you can provide on the building and assets (we have a format), it is possible to do these without a visit. And they cost less! We did one this week for a forum member with a house in Alice Springs.
I’m off to meeting now, but I’ll be around all afternoon. Give me a call if you want to chat about this.
Scott – 1300 660033.If you submit your tax without including depreciation, you can amend it later. But your accountant charge you a fee to do that. And I have a probably silly belief that it’s always best not to draw attention to yourself by amending returns if it can be avoided.
Depending on where it is, and whether we can get access, there is a chance we can get it done in time. We turned a job around this week that came in on Monday.
Scott 1300 660033There’s a valuer there called Colin Dymond. He’s been in Geraldton for a fair while and I reckon he’d know it better than anyone. He’d be worth tracking down.
ScottAhhh, perfect. It’s all going according to plan – talking down Marrickville, that is. Did I mention that there are a few boarding houses dotted around the suburb, too?
Sydney’s Inner West has been very good to me – it’s my comfort zone. Of course, the property boom has been good to me, too.
My friends said I was mad thinking Erskineville would go up in value when I bought a house there in the late 80’s – it was the only suburb I could afford. They told me I was crazy investing in Camperdown, too. They said the same thing when I bought a house in Annandale in the early 90’s (still got that one). Of course, when I bought in Hurlstone Park in the late 90’s they thought I had really lost the plot – made $450K on that one. I’ve done well with regional properties, too. But hey, maybe I’ve finally made a mistake.
Warning to all investors: DON’T TOUCH SOUTH MARRICKVILLE (leave it for me please).There’s certainly a bit of activity over there – we’re fielding more enquiries about Tax Depreciation Schedules in Geraldton.
ScottIt’s a big suburb. South Marrickville is really good. I’ve lived there for a couple of years. I moved there partly for the anticipated capital gain (which I got), but also because I like the character of the suburb. Sure, Marrickville still has the odd shooting, but that just adds to the character. And the gangs tend to shoot eachother anyway. I didn’t ever get my terrorism kit and fridge magnet, either. I think it’s because there are heaps of people of ‘middle eastern appearance’ in Marrickville and they didn’t want to tip them off.
McGraths sold a tidy 2 bedroom terrace with great city views, good yard, close to station, shops etc for $530K last week. I think it would have been a good buy for possible future gain – lousy return in the meantime. A renovated 4 bedroom terrace with city views and RLA sold for $635K a few months ago. It was a very quick sale. If I thought for a minute it would go so cheaply, I would have tried to pick it up. Again, I would have been thinking about future growth as opposed to current returns.
Henry Kay had a big development site in Marrickville (ex warehouse). I think the banks now own it. Not sure what is happening with that site. I heard there were some structural issues with the old building.
ScottTough Deal,
I like the Inner West, too. (Though RE agents do keep expanding it.) I drove past a new site in Booth Street, Annandale yesterday. I think it’s on the corner of Taylor Street. It’s at the excavation stage. No signs up yet, but it will be apartments. And there’s every chance they’ll be pretty stylish. That area is really good – I own an house (IP) nearby. It’s on a bus route, good cafes, tree lined streets etc. Completion will be at least 18 months away. I’m going to keep an eye on it.
There’s another site that looks to be around 6 months from completion on the corner of Marrickville Road and Victoria Street, Marrickville. Again, I don’t know much about it, but I’ll watch it. It’s not a huge development. Marrickville isn’t in the same class as Annandale, but I think there’s growth to come – I’ve got a house there, too.
ScottThanks Domo.
I’ve been out of town this week so it’s good to hear things are running well back at the office.
Scott
Hi Ben,
There is a publication called Rawlinsons that would help. It has data on historical construction costs. I think the residential version is around $200. Not sure if there is a CD version. You’d probably find a copy at some libraries. If you’re in Sydney, the Building Information Centre might have something.
I’ve never looked at the Somersoft calculators, but somebody once mentioned there was something there that helped calculate depreciation. My guess is that it would be pretty rudimentary. We’re going to build one, and it will be a good one, but every time I look at it the thing gets bigger and more daunting – there are so many variables. We’ll probably charge $20 per use to recoup costs.
I’ll be offline for the rest of the week. If you have any other questions, try Nicola at the office 1300 660033.
ScottHi ScottyB,
Strictly speaking, the depreciation clock starts ticking on your fixtures and fittings (Depreciable Assets) when you purchase the property. So there will be some lost depreciation for the period you lived there. The building itself depreciates at a flat rate per year from the date of construction. NB it would need to have been built after July 85 to be eligible for the building write-off.
Any questions, feel free to call.
Scott – Depreciator 1300 660033Hi ScottyB,
Strictly speaking, the depreciation clock starts ticking on your fixtures and fittings (Depreciable Assets) when you purchase the property. So there will be some lost depreciation for the period you lived there. The building itself depreciates at a flat rate per year from the date of construction. NB it would need to have been built after July 85 to be eligible for the building write-off.
Any questions, feel free to call.
Scott – Depreciator 1300 660033The Reno Kings do seminars. I’ve seen their seminar material and spoken at one of their seminars (on depreciation). They’re pretty good – and very successful. You’ll pick up lots of good, practical ideas. They don’t necessarily advocate selling, but they are into buying and renovating to add value. Whether or not you sell is up to you. Not sure what the cost of the seminars is.
ScottThe thing I like about weatherboard houses is that compared with BV it’s easy to knock a hole in the side and put a big window in or doors and a deck. Internally, it’s easy to fiddle with them, too. I’d love to live in Queensland so I could get my hands on some weatherboard houses. the stock around me is all cavity brick.
ScottPelican,
The Smith Family have a good program for children in Australia. Families are supported with money for schooling – uniforms, books etc. We get feedback on the kids we support. Of course, it’s first names only so they could be imaginary kids?I use Terri Scheer – http://www.terrischeer.com.au They’re the only insurance company in Australia that only does landlord’s insurance. Where possible, I will always use a specialist, as opposed to a generalist. I’ve found their service really good, too e.g. they have in-house contact centre staff (as we do).
Scott – DepreciatorI think the Commonwealth Bank have an on-line calculator that can help you put with an educated guess on building replacement cost.
Myydral,
Alot of the schedules we do these days are backdated, so it’s easy to claim ‘lost’ depreciation. We do trips to places like Alice Springs when there are sufficient jobs. Kalgoolie would be our most visited ‘remote’ area. We have a new method of handling properties in places like Alice Springs. Call me and I’ll explain it.Domo,
Call the office in the morning, and if I’m not there, one of the front end gang will be able to help you. In part, they’ll quiz you about the property to make sure it’s worth your while (and your money) commissioning a schedule. Feel free to send me an e-mail, too.[email protected] 1300 660033
The only person who could give you an accurate insurance replacement cost would be a QS or Estimator. Send me an e-mail and I’ll see if I can put you in touch with someone near the property.
[email protected]As Kaye said, the dates are critical. Often with older, unimproved properties it’s hard to justify the cost of the schedule. Having said that, there is still depreciation in them and you might as well claim it. I can talk you through how you can self assess some assets – it won’t cost you anything to do this. I’ll be back in the office (Depreciator) after lunch Monday and around most of the week. Happy to chat with you.
ScottThanks for the endorsement.
Badriver, forum members get a discount. If we’ve done a schedule for you and you didn’t let my guys know you came via the forum, send me an e-mail and we’ll sort out the discount.
