ᐅ What is the depreciation value of an 11-year-old fitted kitchen?
Created on: 8 Jul 2018 19:05
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M4rvin
Hi everyone!
My mom moved into a newly renovated small house 11 years ago.
She had to take over the 3-month-old kitchen (3,973€ list price) for 3,200€.
Now she has been given notice for personal use...
How much can she still sell the kitchen for, and is the previous owner even required to take it?
My mom definitely does not want to keep the kitchen! (It was all pretty low quality, I think it was from a Spanish manufacturer)
Thanks in advance
M4rvin
My mom moved into a newly renovated small house 11 years ago.
She had to take over the 3-month-old kitchen (3,973€ list price) for 3,200€.
Now she has been given notice for personal use...
How much can she still sell the kitchen for, and is the previous owner even required to take it?
My mom definitely does not want to keep the kitchen! (It was all pretty low quality, I think it was from a Spanish manufacturer)
Thanks in advance
M4rvin
echidna75 schrieb:
Hello Marvin,
The condition of the kitchen can still be great, especially if your mom took good care of it. It’s nonsense to say it’s worthless.
Insurers calculate depreciation like this: 24% loss in the first year, then 2.5% each year after.
You can add another 50% on top of that, which is generally accepted by courts if the buyer complains afterward.
Basically, the rule is: as seen, so bought, and no one has to buy if they don’t like it.
So the kitchen can definitely still be worth around 70% of its original value. That’s pure wishful thinking.
A budget kitchen still being worth 70% of the original value after 11 years? Only if it’s the last kitchen on earth.
Kitchens are depreciated over 10 years at 10% per year.
The kitchen’s book value is zero.
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echidna7527 Sep 2018 13:44Incorrect – kitchens and furniture are depreciated over 25 years.
Legal basis for the buyout payment:
Section 4a, paragraph 2, sentence 2
Apartment Brokerage Act. It’s not just any opinion that matters, but the law.
And then you simply read specialist articles and court rulings.
Legal basis for the buyout payment:
Section 4a, paragraph 2, sentence 2
Apartment Brokerage Act. It’s not just any opinion that matters, but the law.
And then you simply read specialist articles and court rulings.
An 11-year-old kitchen is definitely not worth 70% of the original price – no way! Otherwise, someone has to explain to me why brand-new showroom kitchens usually sell for less than 50%...
Additionally, the appliances are most likely fully depreciated. So only the "wood" remains as value. You can probably account for that. But don’t forget: there is NO obligation to take over anything! Therefore, there is NO "legal price assessment." In the end, both parties have to agree – or the kitchen has to be removed.
Additionally, the appliances are most likely fully depreciated. So only the "wood" remains as value. You can probably account for that. But don’t forget: there is NO obligation to take over anything! Therefore, there is NO "legal price assessment." In the end, both parties have to agree – or the kitchen has to be removed.
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chand198627 Sep 2018 13:52echidna75 schrieb:
It’s not just any opinion that matters, but the law.Nonsense.
The market value of the kitchen is only a few hundred euros, maybe close to zero. It’s that simple. It has nothing to do with what insurance companies do.
Only what someone is willing to pay counts. That’s called the market. Since no one is legally obliged to pay for taking over used furniture, the kitchen is worth exactly what someone is prepared to pay for it. And that is likely very little for an 11-year-old kitchen that was cheap to begin with.
Unless we’re talking about staging a fake insurance claim to get the most money possible? No, that’s definitely not what we’re discussing...
First of all, the WoVermittG is not applicable here at all, since the landlord is supposed to pay, not a possible new tenant.
Secondly, the cited paragraph does not say anything about your 2.5% annual depreciation.
For tax purposes, kitchens are depreciated exactly as I mentioned, namely over 10 years.
There may be other approaches for calculating residual value; for example, I have read about a 20% immediate depreciation upon installation and then 5-10% per year, which does not seem unrealistic to me.
What @echidna75 is making up has nothing to do with reality—maybe they once bought a used kitchen too expensively and are now trying to justify it.
Secondly, the cited paragraph does not say anything about your 2.5% annual depreciation.
For tax purposes, kitchens are depreciated exactly as I mentioned, namely over 10 years.
There may be other approaches for calculating residual value; for example, I have read about a 20% immediate depreciation upon installation and then 5-10% per year, which does not seem unrealistic to me.
What @echidna75 is making up has nothing to do with reality—maybe they once bought a used kitchen too expensively and are now trying to justify it.
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