Forum Replies Created
Thanks Matthew F & WisePearl
How can you ignore depreciation benefits? it will add 000’s per year to the cash flow compared to an old 1960’s house.
I accept that there is risk of government tax change, but that applies broadly to all sectors of the economy.
I understand your point about not buying for tax reasons only, but given a choice between a new unit (that will also rent quickly) and an old house (which may be more difficult to rent) – all other things being equal, the tax depreciation benefits of the unit will add many thousands over the first few years, when cashflow is at its lowest point.
This is why I am leaning towards the unit with better depreciation.Mathew F – I pointed to the hot spotting report, but also Margaret Lomas has been recommending Traralgon on her Sky business show recently because of population growth, economic investment and development in the area, and local govt infrastructure development. Its got efficient rail links to Melbourne and historically stable property prices (relative to Melbourne or Sydney).
Hotspotting.com.au argue that CBD property does not perform better than these regional centres necessarily. Laprobe Valley has a population of over 130K so its a decent size.Thanks DCWWOOD. I have done the numbers though and with depreciation benefit a new unit works out better than a older house. In fact new units are renting for more in this area than older houses because of demand for this type of property. Most of the dwelling stock in the area is traditional housing, so units are less common (maybe that why they rent for more).
The other option is a new house, but you definitely taking will in to the $300 then – im hoping to spend in the low 2’s.There is no body corporate on this unit either, just insurance.
Thank you for taking time to give me your insight.
I agree the outward appearance is one thing putting me off, but the build quality is actually very good (my non professional opinion). Small detail like Blanco appliances and quality door furnishings etc, which will hopefully attract the right tenant and good depreciation.
Aside from all that I agree with your comments on Traralgon going forward. I was actually a bit surprised by rent return in the area for new units like this.
