NewDay, as your property will be an IP, the cost of lodging a caveat will be an expense that can claimed against your tax liability. Speak to your accountant to find out more.Good luck with the settlement – remember to switch on all the appliances and check every nook and cranny including garages, gardens and storage spaces before you settle!

Investabit wrote:
If you don't have  referal from someone you trust, then ask for references not from clients but from accountants who see  wide range of depreciation schedules from a wide range of QS's

Ooo not necessarily, as some QSs pay accountants a commission for each referral…

number 8 wrote:
I have a lot of respect for all my tenants and in reverse they look after my property. Allow them some space to love your house (provide them with gifts i.e. A/C for your house), don't give them a reason to leave, but encourage them to stay. If your house value is $400k, they are effectively making you $40k pa. Why would you not…[Read more]

Definitely, longdd. I have a 1971 built flat that I renovated about 10 years ago. Brings me $4K every year in depreciation that I only discovered after getting a QS report done after the renovation. That report’s well and truly paid for itself!

Whenever we’ve sold, we’ve included a special condition in our contract that states the property will be delivered in the condition it is in at the date of the sale and that the purchaser has inspected the property before signing the contract. So if anything breaks after the contract is signed, the onus is on the purchaser to fix it. This has…[Read more]

jacqui_03 wrote:
If I am building an IP am I better to get a QS to do a full inspection or would it be better if I used an online service as I would have all the costs from the building contract?

DEFINITELY ensure a reputable QS inspects the property – this is an important way of protecting yourself if the ATO challenges any valuations of…[Read more]

slipper wrote:
In our IP we have good tenants that are keen to stay on for long term.  There have already been a couple of rental increases  ( albeit only small ones) so the bond now doesn't cover the four weeks rent.  I am interested in whether people ask their tenants for increases to the bond when rents go up ?

If the tenant is in con…[Read more]

brisbaneJosh wrote:
Hello everyone!My wife and I are new to Property Investing and wondered whether we could get some ideas on how best to proceed!…My wife and I are both 29yo and have combined earnings of $180k pre tax pa

With that level of tax, obtaining tax variations would greatly assist you guys obtain more cash flow. Here's some more i…[Read more]

Neil is spot on. A depreciation schedule will include any building allowance claimable on the property (depending on its age). Here's some more info on depreciation reports: http://blog.rentwise.com.au/index.php/2010/05/18/depreciation-reports-please-explain

duckster wrote:
Depreciation is not easy to work out as you need to work out effective life of items and if you are not quite up for the challenge you could employ a quantity surveyor who will issue you with a depreciation schedule that makes depreciation a lot easier to work out for the tax return form.

Couldn't agree more – here's some more…[Read more]

Spas largely appeal to empty nesters or retirees who don't mind spending the money on water and maintenance and who aren't in a hurry! Baths are far more practical for families, both for rental and resale value.

Hi Sasha,You might find this check list handy for questions you may wish to ask potential accountants: http://blog.rentwise.com.au/index.php/2010/06/20/what-to-look-for-in-an-accountant

JacM wrote:
HiTax is done in a couple of different ways.  Go to the http://www.ato.gov.au and read up on capital works to understand how you claim on renovations and so on.The easy answer to your question is:Get your rental return (which is 260per week) and multiply by the number of weeks you received rent in the financial year (we'll say 28).  That gi…[Read more]

Not a fan of off the plans sorry. In my experience, you lose the first 2-3 years of capital growth due to the inflated purchase price, the estimate on rental income is always excessive and it's likely the place will be vacant for some time when it's ready given all the apartments will be released for rent at the same time. Competition may well…[Read more]

binscab wrote:
Can I just depreciate it using that original figure or would I still need a quantity surveyor?

Definitely go with a reputable quantity surveyor who inspects your property – you'll be amazed by what you can depreciate, by how much and for how long! Here is some handy info on depreciation reports: http://blog.rentwise.com.au/index.p…[Read more]

Rowester wrote:
Hi,I have a (dept of housing) tenant, who has been a perfect tenant…..looks after the place, personal rent cheques always on time. However, I need to renovate the propoerty and on-sell.The rental contract expired in April 2010. Whilst I have given her an indication that I will need to renovate, I haven't given her a time…[Read more]

You should receive rent from the day of settlement, although this could initially be included by way of an adjustment.

Blissy wrote:
Hi,Can anybody recommend any good quantity surveyors to do a depreciation schedule on my IP in the Sydney area? and what's the average price to have the schedule done?Thanks.

Blissy, whoever you go with, make sure they conduct a thorough inspection of your IP. This will greatly assist you should the ATO ever challenge any…[Read more]

Why don't you make an appointment with the Council planner who is looking after your file? Talk through all the issues and make a list of the information they still need. That way you can know exactly what is happening. Yes, it's a hassle but it could save you months of delay.

twinz wrote:
My accountant told me not to worry about get a depreciation report done and he will calculate the depreciation rates as the house is very old (80 years old) despite that internal kitchen/ bathroom have been upgraded.

Ahh the rates are easy (they're on the ATO's website), but it's the value of each item that's important, because…[Read more]