I am about to purchase my first investment property – as it is only 4 years old I have managed to obtain a copy of the original depreciation schedule.
When I look at the “plant and equipment” section of the schedule it reads similar to this:
Year 1 – $5500
Year 2 – $2000
Year 3 – 1500
Year 4 – 1000
Year 5 – 900
Year 6 – 700Clearly, the depreciation drops off sharply the first couple of years – for the original purchaser anyway.
The question is – If I were to have my own depreciation schedule drawn up would you expect the values to be higher?
I remember reading somewhere that the value “resets” when a property changes owners – so whilst there is not much depreciable value for the original owner, it may well be higher for the purchaser.
I'd suggest sending an Email to http://www.depreciator.com and ask whether it needs redoing. I have found them to be very good and would advise you correctly.
If the place is only 4 years old the original company should be able to update it??? Not really sure how it works regarding resetting anything. Surely the value is the value?
sorry, can't be of any more help.Thanks very much. I assume you are referring to depreciator.com.au? I will contact them – thanks very much.
unlockgroup wrote:Thanks very much. I assume you are referring to depreciator.com.au? I will contact them – thanks very much.Yep. Sorry about that. I've had all mine with them. Very professional.
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