Hi everyone, I’m glad I have found your site. I’m new in Victoria (from NZ though not a native Kiwi). I have experience and knowledge I can share with anyone who is interested in investing in NZ property.
I’m more or less out of the ratrace but I would very much like to help a local friend who is facing a dire situation after a business venture went wrong.
This person is not young and basically has to start from zero again. If this sort of challenge appeals to you, I would appreciate your input, especially on how depreciation works here….I tried this webpage
http://www.ato.gov.au/individuals/content.asp?doc=/content/9033.htm&pc=001/002/002/005&mnu=1009&mfp=001/002&st=&cy=0
but I can’t say I got the picture just yet…Hi Vicgirl,
There seems to be quite a bit of information on the link that you quoted, however it is a bit of a worry that it is from 2001.
I’d suggest you do a search on this website, as deprecition has come up fairly often in discussion, and you should find some plain english advice.
Good luck,
Sue [biggrin]“Be careful not to step on the flowers when you’re reaching for the stars”
Try this site http://www.depreciator.com.au
Or give me a call and I’ll give you a rundown on depreciation.
Scott – 1300 660033
Hi Vicgirl, Welcome to our lovely state of Victoria. Have you tried this site? http://www.depreciator.com.au Also Margaret Lomas’ book “Positive Cash Flow Property” pages 42-46 has some info on the subject. Hope that helps.[sunny]
Thank you to everyone, I will definitely check out the link and this site. Victoria is a wonderful state and I’m very happy to be here….QLD’s not bad either, in fact I LOVE it…..
…but that’s all I’ve seen sofar so I assume the rest of the country is also very nice…..G’day again, I’ve had a look at this Depreciator site…so…here’s some stupid questions only a newcomer can ask[embarassed]….. in case of your average established 2-3 BRM house it’s roughly about $2000 per year or only if it’s been recently renovated? Or for a new townhouse it’s about $6000 P/A you can claim? The samples show a five year period, what happens after 5 years?
Vicgirl,
Samples can only be very general. I’d rather not use them, but there’s an expectation that we provide some indicatives. Those samples were from actual jobs, but every job is different.
There are a huge number of variables that affect depreciation. We sat down a while ago and looked at what we would have to do to put together a really complete depreciation calculator. We’ve got lots of the software already built for our QSs to use, but having something investors could use for sufficiently accurate estimates was a huge job – we’ll get onto it during our off-season.
In answer to your question, depreciation keeps going till it runs out. Buildings can depreciate for either 25 years or 40 years depending on when they were built. Renovations carried out after Feb 26, 1992, depreciate for 40 years. Fixtures and fittings/depreciable assets depreciate over different periods of time depending on the effective life of the asset. the Low Value Pool speeds up depreciation.
All of the above may have confused you further. Call me and you can ask as many questions as you like. Being tax season, I’m in the office most of the time these days.
Scott – 1300 660033Thanks Scott…you must be a busy man then….I hope you realise that I am not asking about an imminent purchase, only trying to come to terms with the rules here so I can have a rough idea when looking at potential investments. If that’s ok with you, I will give you a call next week.
Yep. Very busy this time of year. At least it’s winter. We’re lucky that our slow season coincides with summer. Happy to answer any questions, whether they’re general or specific. Once you’ve got your head around a few key dates, depreciation is pretty straightforward.
Scott
…but that’s all I’ve seen sofar so I assume the rest of the country is also very nice…..You must be logged in to reply to this topic. If you don't have an account, you can register here.
