When is an IP too old?

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gunner10
Member
@gunner10
Join Date: 2004
Post Count: 14
April 3, 2004 - 9:49 pm
I have purchased a IP that is 30+ years old. It is in good condition, double brick construction with tiled roof. I was just wondering if this was a poor purchase because of the age of the property. I am continually told of the ol’ tale where older buildings were built better. Does anyone have any comments?
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
April 3, 2004 - 9:54 pm
Mate, there are no absolutes. A good Ip is one that fits your strategy.
Those who rely on depreciation might find that this property will not give the tax benefits they need.
I could give you examples of 100 yr old properties that are great and brand new places that are dreadful investments!
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
afloat
Participant
@afloat
Join Date: 2004
Post Count: 48
April 4, 2004 - 12:58 am
30 yr young property aye!! Did it check out with all YOUR guidelines to purchasing the property in the first place?
Who was it that told you that old places were better built? Do you trust this advisors advice?
head above water
Afloat
kay henry
Member
@kay-henry
Join Date: 2003
Post Count: 2,737
April 4, 2004 - 1:11 am
Gunner :o) Firstly, congrats on your purchase!
A couple of things. Double brick is a GOOD thing, I agree. And yes, when I was young, I certainly heard all the merits of buying houses that were of an older vintage- not too old! 30 years old is not THAT old though. I guess I am referring to houses built in the 50’s and how solid they were blah blah.
Older units- 1960’s, 70’s and 80’s, on the other hand, are, I read, now struggling in the market. I don’t think there were any units built much before 1965- people built houses before then. But I do know some of those units are having structural problems, of the concrete cancer variety. And they are also struggling in selling in a flatter market, because newer units are more aesthetically pleasing.
In terms of structure though, Gunner, it all depends on the state of the house. If you had a building report done on the place, hopefully it will attest to being a good buy!!
kay henry