All Topics / Help Needed! / Which one to buy – 3 years old or established old property
Hello
I am trying to work out which one is going to be the better deal, to but
a) 3 years old 1 bedroom apartment in a medium size complex
OR
b) Old established 1 bedroom apartment in a smallish complexI cant recall all the tax benefits and write off potential for a new property, both are in the same suburb and I know there are pros and cons for both. I know you can depreciate the 3 year old for X amount of years and there fore my tax benefeit will be better…..how long does this go for? and do I depreciate the inside's or the building as well.
I am trying to do the figures on a spreadsheet to see which one costs me less out of pocket
thank you
Hi Lucigoosey,
I'm bias towards houses. Having had both, I'm partial to houses as the on-goings costs is slightly less. Strata fees and corporate sinking funds can be a deal breaker.
Bless you.
Take care.
Angel
Hi Luci
What’s the price difference between the two? Are you paying a much higher premium for the newish property?
With older stock you’re generally able to purchase at a lower price and add value to (something that’s usually not achievable and/or necessary with something new).
The depreciation will be better on the new property. However, you may be surprised by how much you can depreciate on the older one (particularly if you do carry out renos).
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
It shouldn't matter how old they are. What matters is which one is going to give you the most profit. Tax is one small consideration, but the main one should be which will give the highest capital growth and the highest rental yield.
An older property may mean slightly less depreciation over the long term. This shouldn't make much difference to you as it also means items will wear out quicker and need replacement quicker too.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks for your thoughts……something for me to think about………..
East Stkilda is definitely an area with greater growth potential
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