Depreciation schedule - Villaworld North Park Estate

Discussion in 'Real Estate' started by hillsguy, 10th Oct, 2005.

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  1. hillsguy

    hillsguy Well-Known Member

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    I have a question regarding a depreciation schedule for Brisbane IP I just got done.

    Depreciation for Yr1:
    Diminishing Value Method : $4057
    Prime Cost Method : $3550

    This is of course lower than I expected.

    I was expecting more in the $5 - 6k territory given it is a new house and therefore the 2.5% depreciation of the building should be over a reasonable amount (i.e. $130k --> $3250pa) and then the $10 – 15k of fittings between all the lights, appliances, air cons, carpets, HW etc. that would add up to another $2k+.

    Just curious if anyone else here has bought an IP from Villaworld at the North Park Estate and had a depreciation schedule done. Would be good to compare.
     
    hillsguy, 10th Oct, 2005
    #1
  2. Nigel Ward

    Nigel Ward Well-Known Member

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    Does the schedule list out the items being depreciated and their effective lives etc?
     
    Nigel Ward, 10th Oct, 2005
    #2
  3. hillsguy

    hillsguy Well-Known Member

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    I don't have report in front of me however I am sure it does.
     
    hillsguy, 10th Oct, 2005
    #3
  4. Tzaki

    Tzaki Well-Known Member

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    Strangely enough nowadays it is the second year that has the greatest depreciation.. any QA's out there?
     
    Tzaki, 10th Oct, 2005
    #4
  5. 24724

    24724 Well-Known Member

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    Hello,
    Not an expert here, but the tax year is July to June. So if you get your depreciation schedule done in October, you only have part-year for the first financial year, then the second year will give the full 12 months worth.
    Jayar
     
    24724, 10th Oct, 2005
    #5
  6. hillsguy

    hillsguy Well-Known Member

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    Jayar, you are correct ... my schedule is only for 11months.

    I just went through it in detail and realised that surveyor left out some extras ( aircon/ dishwasher/ security grills ) !!!

    Numbers looking better now. :D

    Depreciation for Yr1 ( 11months only ):
    Diminishing Value Method : $4648
    Prime Cost Method : $4014
     
    hillsguy, 17th Oct, 2005
    #6
  7. kennethkohsg

    kennethkohsg Well-Known Member

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    Dear Here_to_learn,

    1. How do you find the house finishings and fittings?

    2. How do you rate the house built by Villaworld?

    3. Is it good value for money?

    4. What kind of capital growth can you/we expect from your present investment over the next 3-5 years? Care to share it with us? How's the present Brisbane and Goldcoast property markets doing presently?

    5. Looking forward to your honest sharing and learning from you in due course, please.

    6. Thank you.

    regards,
    Kenneth KOH
     
    kennethkohsg, 22nd Oct, 2005
    #7