All Topics / Help Needed! / To buy an older property in a good suburb or buy a newer property in an average suburb
Hi All,
I have the opportunity to either purchase an IP in Harris Park or Guildford. Both are 2br, similar size. Guildford has secure garage, Harris Park has car port. Both are 5 – 10 mins from their respective stations.
The unit in Harris Park is in a block that is over 20 years old, but it is fairly modern inside, so no work is required.
The unit in Guildford is 6 years old so everything is brand new.
Both properties are the same price $300K, and rent in both areas is similar $380 – $400pw. I would get better tax dereciation with the unit in Guildford, but Harris Park is a more desriable suburb. My plan is to hold the unit for 5 – 10 years for CG.
So which unit would you buy?
Thanks.
I don't know either market too well but by the sounds of it, if your looking to hold onto it for 10 years then CG is likely to be higher in the more desirable area – particularly if they're both starting from the same purchase price.
You mention that the Harris Park IP is renovated. How much are non renovated units within the area? Could you be paying a premium for someone elses renos?
Also, you'll be able to claim depreciation on the renovations so the depreciation on Harris Park may be better then you thought.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
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The renovations onpopulare place in Harris Park were done a while ago. It is not brand new but not very old either. I wouldhold there.eed to do anything to it if I rented it out, maybe a bit of paint here and there.
Because of Harris Park being so close to Parramatta the area is very popular. Units are hard to come by, so I decided to look at Guildford hoping the ripple effect will take hold there.
My view is if you are looking for a long term investment I would buy the property that will provide you with the greatest capital growth. Although the new property may give you better tax deductions it is important to remember that you are paying for this when you buy the newer property, so to me go for capital growth because that at the end of the day is why we invest.
Nigel Kibel | Property Know How
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Hi David,
You are looking at it the wrong way – most of Sydney is good to buy. The question is the opportunity – i.e. what can you do to the property to create a higher yielding property or create CG.
I know your budget is tight so your options are limited particularly in the Sydney market but what is your exact budget and whats your IP strategy?
Regards
Shahin
TheFinanceShop | Elite Property Finance
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