Which one is better to invest? House with land or a unit? And any difference of impact on tax?
There are reasons why it can be argued that one is better than the other. Depends who you speak to.
A common idea people express is:
Land appreciates and buildings depreciate.
So by this you may expect higher capital growth for a home on land and less on an apartment sharing a much smaller slice of the land.
Usually an apartment will give you a good depreciation schedule esp if there are lifts and pools involved. This means more tax effective.
This is a generalisation only.
Cheers,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Rentals, people still seem to prefer houses.
Body corp fees, can take away up to 3 months rental.
Land value, minimal with units/apartments.
Resale: much bigger audience with house and land, as this tends to be prefered by families and “mums and dads”.Hello,
If you are looking for tax benefits then I think it would be a safe asumption, that you are referring to depreciation.
There are two types of depreciation. Depreciation on the internal fittings, and depreciation on the building.
When considering internal fittings, you need to look at the quality of the property. The higher the quality, the higher the depreciation allowance.
2.5% can be depreciated from the building itself. A large home usually has more benefits in this area.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auWith a population of singles- who are constantly working hard and cannot find the time to mow the lawns, and who want amenities like gyms, a swimming pool and the lifestyle and with transportation costs constantly on the rise and with a huge population coming from Asia who have lived most of their lives in units- I think many people still opt for Units. I think the choice will depend on what sort of unit it is and the suburb its located in.
The topic ‘Which is better House or a unit?Tax Impact’ is closed to new replies.
