• Login:
Welcome, Register Here
follow PropertyTalk on facebook follow PropertyTalk on twitter Newsletter follow PropertyTalk on LinkedIn follow PropertyTalk on facebook
Results 1 to 8 of 8
  1. #1
    Join Date
    Dec 2012
    Posts
    12

    Default Chattels valuations

    Good day

    I just bought a brand new investment property in Dec 2013 , looking to have the Chattels valued

    Any recommendation on chattel valuers in Papakura area

    Many thanks

  2. #2
    Join Date
    May 2004
    Posts
    2,841

    Default

    Quote Originally Posted by hdb View Post
    Good day I just bought a brand new investment property in Dec 2013 , looking to have the Chattels valued
    Any recommendation on chattel valuers in Papakura area Many thanks
    Valuit.co.nz

  3. #3
    Join Date
    Jun 2012
    Location
    Auckland
    Posts
    84

    Default

    Quote Originally Posted by artemis View Post
    Valuit.co.nz
    Yep, definitely Valuit. Other valuers will pick a number out of a hat, usually a very low number that is not that accurate. Valuit gives you a breakdown piece by piece with costs and dep. values. We recommend them to all our clients. We have no vested interest in doing so, other than that they're the best.

    Regards
    EpsomTax.com Ltd
    Property Accountants

  4. #4
    Join Date
    Sep 2013
    Location
    Victoria, Aus
    Posts
    135

    Default

    Silly question but I have some old properties, with original kitchens and bathrooms. I'm planning to upgrade these over time but obviously haven't had a chattels valuation. I also have a 40 year old property, bought last year, but with nice newish kitchen and bathroom. I get 300 pw rent for that one. I've never had chattels valuations on any of them as I thought it's not really worth it for cheaper properties. Am I right?

    Quote Originally Posted by epsomtax View Post
    Yep, definitely Valuit. Other valuers will pick a number out of a hat, usually a very low number that is not that accurate. Valuit gives you a breakdown piece by piece with costs and dep. values. We recommend them to all our clients. We have no vested interest in doing so, other than that they're the best.

    Regards
    EpsomTax.com Ltd
    Property Accountants

  5. #5
    Join Date
    Jun 2012
    Location
    Auckland
    Posts
    84

    Default

    Quote Originally Posted by Eljay1 View Post
    Silly question but I have some old properties, with original kitchens and bathrooms. I'm planning to upgrade these over time but obviously haven't had a chattels valuation. I also have a 40 year old property, bought last year, but with nice newish kitchen and bathroom. I get 300 pw rent for that one. I've never had chattels valuations on any of them as I thought it's not really worth it for cheaper properties. Am I right?
    If you have made substantial changes to the properties thru upgrades, as you mention, then you could justify revaluations of the affected chattels based on these. Possibly much of the kitchen and bathroom upgrades would not be depreciable, as these would generally be improvements rather than r&m. But talk to your accountant about the situation specifically... Unfortunately, with the rest of the chattels, if you've never depreciated them since purchase you can't start now.

  6. #6
    Join Date
    May 2007
    Location
    Hamilton
    Posts
    3,635

    Default

    Quote Originally Posted by Eljay1 View Post
    Silly question but I have some old properties, with original kitchens and bathrooms. I'm planning to upgrade these over time but obviously haven't had a chattels valuation. I also have a 40 year old property, bought last year, but with nice newish kitchen and bathroom. I get 300 pw rent for that one. I've never had chattels valuations on any of them as I thought it's not really worth it for cheaper properties. Am I right?
    Hi Eljay1,

    I'll separate your question into a few parts

    1) if you have owned rentals for a number of years, then if you replace the bathrooms and kitchens, this work will most likely be a repair. As long as you are just bringing the items back to the original standard (when the house was built) then it will be a repair. If you extend or overly improve, then it is likely to be an asset!
    A number of years ago IRD challenged what we could depreciate as chattels, and by doing so made it clear that kitchens and bathrooms were part of the building and not chattels. Therefore we cannot depreciate these items as chattels, but when doing renovations and repairs we have to consider the whole building, meaning the work is normally a repair.

    2) when you buy a property, you generally make a decision to chattels depreciate or not. Best to do it straight away and within the first tax return. If you missed the first year, IRD would not like you changing but most property experts/tax experts would argue that you technically could. After the first year or two of being missed, it becomes a bit difficult to work out the opening balances.

    3) with older properties it depends on what the chattels are. I look at the major five items, carpet, curtains, dishwasher, heaters/heat pumps and stove. If these are of reasonable value, then go for it. There are also lots of smaller items that are depreciated, and some at lower rates such as driveways.

    4) if you buy and then do up straight away, then you would use the cost price of your chattels.

    Hope this helps

    Ross
    More Profit from Property? TEACH ME MORE
    Ross Barnett - Coombe Smith Property Accountants
    Proud to give the best property advice for over 13 years.

  7. #7
    Join Date
    Jun 2012
    Location
    Auckland
    Posts
    84

    Default

    thx for the extra detail Ross.

  8. #8
    Join Date
    Sep 2013
    Location
    Victoria, Aus
    Posts
    135

    Default

    Thanks both of you for the replies. Rosco, that extra info is also really helpful. I've emailed them re one of the properties so we'll see what happens as I'm not sure if they cover Timaru area.

    Quote Originally Posted by Rosco View Post
    Hi Eljay1,

    I'll separate your question into a few parts

    1) if you have owned rentals for a number of years, then if you replace the bathrooms and kitchens, this work will most likely be a repair. As long as you are just bringing the items back to the original standard (when the house was built) then it will be a repair. If you extend or overly improve, then it is likely to be an asset!
    A number of years ago IRD challenged what we could depreciate as chattels, and by doing so made it clear that kitchens and bathrooms were part of the building and not chattels. Therefore we cannot depreciate these items as chattels, but when doing renovations and repairs we have to consider the whole building, meaning the work is normally a repair.

    2) when you buy a property, you generally make a decision to chattels depreciate or not. Best to do it straight away and within the first tax return. If you missed the first year, IRD would not like you changing but most property experts/tax experts would argue that you technically could. After the first year or two of being missed, it becomes a bit difficult to work out the opening balances.

    3) with older properties it depends on what the chattels are. I look at the major five items, carpet, curtains, dishwasher, heaters/heat pumps and stove. If these are of reasonable value, then go for it. There are also lots of smaller items that are depreciated, and some at lower rates such as driveways.

    4) if you buy and then do up straight away, then you would use the cost price of your chattels.

    Hope this helps

    Ross


 

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Chattels Valuation
    By propNZ in forum Finance, legal and tax (NZ)
    Replies: 6
    Last Post: 28-07-2016, 11:13 PM
  2. existing chattels
    By Jarm in forum Property Investment (NZ)
    Replies: 7
    Last Post: 27-08-2012, 01:38 PM
  3. Chattels Valuation changes 1.4.11 ????
    By Bluekiwi in forum Property Investment (NZ)
    Replies: 14
    Last Post: 01-06-2010, 11:49 PM
  4. Removing chattels
    By Zub_Zub in forum Tenant Stuff (NZ)
    Replies: 5
    Last Post: 14-09-2009, 10:30 AM
  5. Chattels Valuation
    By Shar in forum Finance, legal and tax (NZ)
    Replies: 39
    Last Post: 19-02-2009, 02:55 PM
  6. why value chattels after purchase?
    By SBF in forum Property Improvements (NZ)
    Replies: 3
    Last Post: 19-07-2007, 12:08 AM
  7. Can I do my own chattels valuation?
    By milodavies in forum Finance, legal and tax (NZ)
    Replies: 6
    Last Post: 14-11-2006, 05:18 PM
  8. % of chattels in a house
    By duwi in forum Property Investment (NZ)
    Replies: 4
    Last Post: 13-09-2005, 08:42 AM
  9. depreciation of chattels
    By tisme in forum Finance, legal and tax (NZ)
    Replies: 4
    Last Post: 14-08-2005, 12:16 AM
  10. Chattels Valuation
    By FreezingHot in forum Welcome Newbies!
    Replies: 11
    Last Post: 28-04-2005, 10:19 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •