Paul Mazoletti

Season’s Greetings from Napier & Blakeley

Santa Hat in wind - reduced2017 was another significant year in property, the highlight of which was pricing within the commercial office sector which produced some record yields in Australia.

It was also another busy year for Napier & Blakeley, with our independent trusted advisory services again being in great demand from both local and offshore clients investing in Australia and SE Asia across the property, development and sustainability industries.

In 2017, we again managed client projects across all states and territories of Australia and also an increasing number of projects across the Asia Pacific region.

We would like to say a big thank you to all of our clients and send all of you and your families our Season’s Greetings.  We look forward to working with you again and to a successful and prosperous 2018 for all.

Our offices will close at 5pm on Friday 22nd December and reopen on Monday 8th January.

Should you have any urgent business during that time, please contact Peter Frith on +61 418 733 987 or on pfrith@napierblakeley.com. Continue reading

2017 / 2018 Napier & Blakeley Construction Costs Datacards

Graphics 2Napier & Blakeley have provided cost advice to all sectors of the construction and development industries for over 32 years and are pleased to provide our updated Construction Costs Datacards:

Sydney

Melbourne

South East Queensland

Adelaide

Perth

Our Quantity Surveying team is able to provide the following services for your projects:

  • Cost Planning, Cost Control & Value Management
  • Reporting to the Project Financier (we are accepted by all major lending institutions)
  • Bills of Quantities and Contract Administration
  • Capital Expenditure Forecasting for Property Owners
  • Maintenance Reserve and Capital Replacement Funds Forecasting
  • Insurance Replacement Cost Assessments
  • Tax Depreciation

Contact us for a datacard hard copy or for any other Napier & Blakeley service.

Do not hesitate to call us to discuss your project.

For further information on our Development Advisory & Quantity Surveying services please contact our team here:

Craig Smith Backgroundv2 Peter Hammond Backgroundv3
MELBOURNE
Craig Smith
o.  03 9915 6300
m. 0407 371 664
e.  csmith@napierblakeley.com
SYDNEY
Peter Hammond
o.  02 9299 1899
m. 0419 980 901
e.  phammond@napierblakeley.com
Adam Greene Background  Paul Cosker Background
BRISBANE
Adam Greene
o.  07 3221 8255
m. 0409 724 395
e.  agreene@napierblakeley.com
BRISBANE
Paul Cosker

o.  07 3221 8255
m. 0434 400 107
e.  pcosker@napierblakeley.com
Andy Brunn BG3
PERTH
Andy Brunn
o.  08 9489 4895
m. 0418 337 225
e.  abrunn@napierblakeley.com

For 32 years and counting Napier & Blakeley have been providing the following services to the property industry:

  • Property Acquisition & Disposal Technical Due Diligence
  • Property Development Due Diligence
  • Quantity Surveying
  • Capital Expenditure Forecasting
  • Make Good Reporting
  • Energy Management
  • Development Monitoring
  • Property Tax Depreciation

Please contact any of the people below for more information or assistance:

Alastair Walker Backgroundv2-edited Craig Smith Backgroundv2
SYDNEY
Alastair Walker
Managing Director

o.  02 9299 1899
m. 0419 503 289
e.  awalker@napierblakeley.com
MELBOURNE
Craig Smith
Director

o.  03 9915 6300
m. 0407 371 664
e.  csmith@napierblakeley.com
Paul Mazoletti Backgroundv2 Peter_Mitchell_Background
BRISBANE
Paul Mazoletti
National Director

o.  07 3221 8255
m. 0408 749 202
e.  pmazoletti@napierblakeley.com
SINGAPORE
Peter Mitchell
Chairman
o.  +65 6550 9642
m. +65 9670 9435
e.  pmitchell@napierblakeley.com

 

TrustCapital Australia put their trust in Napier & Blakeley

2 properties joinedIn June 2017, TrustCapital Australia (TCA) engaged Napier & Blakeley to undertake Vendor’s Technical and Environmental Due Diligence relating to their commercial office portfolio.

Within two weeks of instruction we had reviewed all the available documentation, inspected all the properties and provided written feedback on our findings.

We were able to achieve this using our national team of building consultants, services engineers and cost consultants, in conjunction with external environmental consultants from our approved consultants panel.

This early stage reporting provided TCA, and their Facilities Managers, the opportunity to act upon minor items of deferred maintenance and short term future repairs and maintenance needs, to help prepare the properties for sale.

While the repairs were underway Napier & Blakeley completed the final  written reports.

Our reports covered the technical and environmental aspects of the property and risk assessment was facilitated by capital and maintenance forecasts over a ten year period.

Items in our forecasts are categorised by the detailed scope of the instruction along with a probability rating of the likelihood of such events occurring. Continue reading

Govt curbs property tax deductions

Property TaxTHE federal parliament has passed legislation to limit tax and depreciation deductions claimed by residential property investors along with a vacancy tax for foreign owners who leave homes unoccupied.

Treasurer Scott Morrison and Assistant Minister Michael Sukkar said the reforms will help address housing affordability and assist private renters.

The Treasury Laws Amendment (Housing Tax Integrity) Bill 2017 will disallow certain deductions relating to residential investment properties.

Morrison said the changes disallow claims for travel expense deductions and limit plant and equipment depreciation deductions to assets not previously used.

Depreciation will only apply where the depreciating asset was acquired new – this reform is expected to raise $260 million over forward estimates.

The Treasurer said limiting plant and equipment depreciation deductions will remove the existing opportunities for items to be depreciated by multiple owners in excess of their actual value.

For second hand residential properties purchased after May 9, investor will only be able to claim depreciation for plant and equipment assets where the depreciating asset was acquired new for that purpose. Continue reading

Building Developers and Owners are Being Sandwiched

3 joined up claddingCosts, Risks and Returns are being impacted by uncertainty around the future acceptability of Aluminium Composite Cladding Panels (ACP).

Since the Lacrosse Apartment building fire in 2014 and the tragic Grenfell Tower fire of 2017, there are still more questions relating to the use of flammable ACP than answers.

Industry, governing bodies, financiers, building owners and occupiers, are yet to really understand their options.

  • Will the import and use of flammable ACP in Australia be banned? – one of the suggestions made by the Senate’s interim enquiry report.
  • Will the National Construction Code and Building Regulations be revised to require increased fire safety around the use of ACP? – as suggested by the current draft amendment out for public comment.
  • Will the ‘grey area’ of whether the ACP is an attachment or part of an external wall be confirmed?
  • Will Government required audits lead to large scale removal of flammable ACP and replacement with compliant materials?
  • Will insurers carve out flammable ACP from insurance policies?  Will premiums increase?
  • Is the reputation of ACP tarnished so much so that developers and architects turn their back on the material – as recently reported by Uniting Communities with their U City development in Adelaide? Continue reading

Tax Q&A: Your Questions on Depreciation Returns, Answered

Q:  I am looking at buying my first investment property this year, and a friend has advised me to purchase a unit instead of a house for better depreciation benefits. I don’t quite understand how this works: houses are bigger, therefore shouldn’t the depreciation returns be higher? I would love some advice before I invest, as I’m aiming to keep my cash flow position as strong as possible (ideally I want a neutral or positively geared investment).

Thanks, Dale

A:  Residential investment properties are usually classified into four main types of building: residential houses, townhouses, apartments or units (low-rise and/or high-rise). All these do allow you to obtain different types of capital allowance deductions.

If you are claiming under Division 40 on the above brand-new properties, you are generally entitled to claim the following percentages of the construction costs as a capital allowance:

a. Residential houses: 5–10%
b. Townhouses: 5–15%
c. Units/apartments, low-rise: 5–15%
d. Units/apartments, high-rise: 10–20% Continue reading

Napier & Blakeley continues to expand in Western Australia

w All joined upAs we enter our 33rd year in business our long association with Western Australian property and development continues, dating back to the foundations of N&B in 1985.

Following the formal opening of a Perth office by Graham Rigby two years ago, we are now pleased to welcome Andy Brunn to the WA team.  Andy, who brings over 14 years of top tier international quantity surveying experience, moved to Perth from the United Arab Emirates 5 years ago.

During the last 5 years he has developed an excellent understanding of the local Perth market based upon his experience in a broad cross section of projects in the region.

Starting his career in the UK in 2003, Andy’s journey to date has seen him working on some of the most prestigious projects in the world whilst delivering exceptional results for his clients.

His experience crosses multiple sectors including corporate real estate, fund monitoring, commercial, retail, aviation, health, government/civil, education and hospitality, where he has been focused on delivering high quality pre and post contract services to developers, end users, financial institutions and contractors/sub-contractors on projects ranging from $500,000 to multiple $billions.

His specialties include cost planning/estimating, value management, financial reporting, payment claims, project management, claims and dispute resolution and procurement.

Andy’s results driven approach along with relationship development ensures that the best possible results are delivered to both client and project outcomes.

We continue to provide a variety of services including :

  • Asset acquisition & disposal due diligence
  • Property depreciation allowances
  • Capital expenditure planning & management
  • Fire insurance reinstatement costs
  • Project and development monitoring
  • Asset efficiency modelling & management
  • Construction cost planning & management
  • Retrofitting planning & management
  • End of lease condition and make good assessments Continue reading

Tax Q&A: Your Tax Questions on Depreciation Schedule and Tax Return Claims, Answered

Q: I have just bought an investment property, which I plan to renovate in about six months’ time. It was leased when I bought it, and the lease runs out in October, so I plan to renovate it when my tenant moves out.

I’m not sure whether I should get a depreciation schedule done now so I can make a claim on my tax return this year, or wait until I’ve completed the renovation(and will therefore have a much better depreciation schedule)?

It seems like I will miss out on tax deductions this year, but I don’t want to spend the money on getting two depreciation reports. Which would be the best course of action?
- Thanks, Wayne

A: There are a few different things to consider here, starting with your initial acquisition.

As the property is income-producing, then you are able to claim allowances, as you point out. To get the benefits available to you, you should prepare an initial schedule that details all
the deductible items as at the time of settlement.

Deductions would be for depreciable plant under Division 40 and for structural items under Division 43, which will only apply if the building is young enough. You can then claim these allowances from settlement up until the point when either the property is no longer earning income or you decide to commence the renovation.

Having this initial schedule will provide you with the base document for your deductions going forward and also the base document to alter after you have completed the renovations. Continue reading

Depreciation dilemma : Is it better to buy new or old properties?

Paul Mazoletti croppedWhen considering depreciation, which will gain the greatest benefit from capital allowances: new or old properties? That is the ongoing question – one that Paul Mazoletti from Napier & Blakeley aims to answer once and for all.  Paul Mazoletti is a director at Napier & Blakeley, the first provider of depreciation schedules in the Australian market (since 1985).

Depreciation (capital allowances) can be a valuable tax deduction for any property investor and a great way to reduce your taxable income. However, the question of old versus new does come up a lot in discussions with investors.  So, who is right and who is wrong?   With effect from 9 May 2017, if you are focusing on capital allowances deductions, new property is the better way to go.  We could also suggest that neither is the ‘best’ way, as there are advantages to both.  However, if legislation is passed soon, the proposed changes will certainly lean you towards buying new.

The benefit of newer properties

The main benefit of buying a new investment property is that this will provide a higher total base tax deduction entitlement, when considering the combined value of fixtures and fittings the building structure’s value.  Deductions through the depreciation of fixtures and fittings under Division 40 may now only be available on any new investment property asset acquisition made after 9 May 2017.  Deductions through the depreciation of the building structure under Division 43 are also available on both new and older assets; we’ll explore this further later in the article.  The ATO introduced capital allowances in 1985 for the residential sector, coincidentally at the same time as Napier & Blakeley opened its first office in Australia and launched its capital allowances business. Continue reading

Technical Due Diligence and ESG

Capture 2Napier & Blakeley’s expertise in asset and development advisory provides an integrated approach to achieve the best results for sustainable property outcomes.

Our quantity surveyors, building consultants and engineers can plan and price works associated with improving the ESG performance of a building.

Sustainable investments achieve long-term financial growth where risks and opportunities are identified and managed through environmental, social and corporate governance or ESG.

Technical Due Diligence is a perfect tool to facilitate good property transactions, to initiate asset management and   to achieve investment goals.

Continue reading …