Hi people
I'm looking at building a new investment property. I know the depreciation value among other things should be an advantage, but I'm interested to know is there any disadvantages in doing so? ie. certain things can't be claimed straight away.
thanks in advance
It can sometimes be a drain on cashflow as you may have to make repayments on the land loan and the progress repayments whilst not receiving any rent.
Cheaper stamps though – as you're only paying on the land.
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]
Can't claim STD on your tax, so if you can buy the land and only pay STD on that, then build the house (you'll pay holding interest while building, but you CAN claim that) so building your own house and land V's buying finished is financially a better way to go.
Also, finished homes are usually more expensive as someone had to pay the holding costs while building and they will pass on the cost to the buyer.
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