Hi – a newbie with a question [
]My husband and I currently have about 40% equity in our house and are looking at buying our first investment apartment. Just wanted to get some ideas on what people thought about purchasing a 2br apartment new vs old.
Obviously there are additional tax benefits associated with a new apartment (depreciation), however do you think that there are significant downfalls associated with capital gains on new apartment blocks?
The apartment we are looking at has significant outdoor space, which makes it a bit more unique, which I guess is a good thing for rental??????
Any thoughts????
TIA
LisaHey Lisa, Welcome to PI.com [
] .Could you through up some numbers on the unit for us to peruse and add comments. What size is the apartment, what sort of rent, etc.
Enjoy
AD [:0)]“Carpe diem, quam minimum credula postero.”
Lat., “Seize the day, put no trust in tomorrow.”
-Horace, OdesAD – no worries [
] and thanks for the welcome []The price of the apartment is $499k – and is approximately 230sqm (91 internal & 138 external) plus a security undercover carspace. It is in a secure building in a beachside suburb in Sydney which is likely to rent for approx $400-430pw. The alternative is an older apartment approx $400k which might rent $330-350(at best)pw.
Depreciation on the new apartment is likely to be around $9k per year for five years. We are planning on structuring as an interest only loan to maximise tax benefit?
If there is anything else you need – let me know.
Thanks again
Lisa
]
] .The topic ‘New apartments vs older apartments’ is closed to new replies.
