A quantity surveyor monitors and estimates building costs from the feasibility stage to the completion of a project. They also prepare property depreciation schedules and give cost estimates for insurance purposes. In general, working with a quantity surveyor can get the most out of your property investment. 

What Is Quantity Surveying?

When it comes to estimating the cost of items in your investment property, the Australian Tax Office needs more than just a word for it. Also, an accountant does not have the proficient knowledge and specialization to estimate the costs of labor and materials in construction methods. While an expert in their field, an accountant can only do tax property depreciation Melbourne if the asset costs are known. 

On the other hand, a quantity surveyor specializes in construction cost estimation and monitoring across various projects. They also help in building measurements and estimating the value of costs to ensure the value of building work, including any renovations, additions, refurbishment, and new construction.

A good quantity surveyor is also useful in calculating the cost of materials in property depreciation as well as providing replacement cost estimates. They can also work as an expert witness in arbitration or mediation cases if needed. Regardless of whether you are planning to purchase an existing property or invest in new construction, a quantity survey can provide valuable advice and estimates to help maximize your return on investment. 

By adding a quantity surveyor to your project, you are mitigating the probability of project derailment or budget blowout.

When Do You Need a Quantity Surveyor?

Before you begin a new construction or renovation of either a residential or commercial property. Use the services of a professional quantity surveyor to maximize your Return on Investment. This is because it is important to have an up-to-date and comprehensive property. Depreciation schedule to get the most out of your investment.

When you first bought an investment property. Look for a quantity surveyor to assess the value of the structure and other claimable assets inside. They are the right specialists to provide a depreciation schedule in calculating property deductions. 

Compared to other professionals, they are experts in construction economics and quantity surveying. Quantity surveyors have enough experience and proper knowledge to measure the construction cost of the property accurately; thus, helping to maximize your deductions. While an accountant can give advice on tax depreciation, a quantity surveyor can provide the exact figures on which you can base your tax return.

What Does a Quantity Surveyor Do?

Quantity Surveyors have important roles in the renovation, refurbishment, and construction process. A quantity surveyor will assist you with cost planning, cost analysis, cost estimation, and value management to establish project budgets and manage costs.

With their expert skills and knowledge of construction costs and methods, they can advise you on the best approach for your investment property as well as help define budgets. They also keep track of the overall project budget. They will create depreciation schedules for the different stages of the project and advise on insurance replacement costs.

Another benefit of using a quantity surveyor is for secondhand or older assets. It can be tricky to determine the underlying value of an old asset that often does not have a receipt. In some cases, a building contract does not indicate the cost of the new asset. This is where a quantity surveyor is qualified to estimate the value of the asset based on expertise and professional judgment.

What Is a Tax Depreciation Schedule?

A qualified quantity surveyor report information on the claimable tax deductions available to you for the annual depreciation, which is also referred to as the tax depreciation schedule. This schedule outlines the claimable deductions for:

Plant and Equipment. These are items that can be detached from the property and typically have a shorter estimated life span. For example, the fixtures and fittings in your investment property such as ovens, air conditioning units, electric garage doors, etc. 

Capital Works. These are items that comprise the structure and are fixed to the building. These include sinks, basins, fences, built-in wardrobes, retaining walls, and more.

The quantity surveyor will make an estimated value against each item. The age of the property, and the fixtures and fittings inside the property.

In addition, the quantity surveyor should be able to answer all your questions, making sure that no items are missed. Once the depreciation schedule is complete, you may give it to your accountant so that they can submit it with your annual tax return.

How Long Does Depreciation Last?

In general, depreciation does not go on forever. As the current owner, you can find two ways that your property depreciation can end:

• The removal of the property from service by stopping income generation or selling it

Keep in mind that when a property changes its owner, it resets the depreciation clock. 

When Should You Claim for Property Depreciation?

The best time to draw up your depreciation schedule is right after the property settlement. While this schedule does not expire, you need to update it in case of repairs, renovations, and replacement of assets.