All Topics / The Treasure Chest / Which is better House or a unit?Tax Impact

Viewing 5 posts - 1 through 5 (of 5 total)
  • Profile photo of RT_from_SydRT_from_Syd
    Join Date: 2003
    Post Count: 4

    Which one is better to invest? House with land or a unit? And any difference of impact on tax?

    Profile photo of Mortgage HunterMortgage Hunter
    Join Date: 2003
    Post Count: 3,781

    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.


    Simon Macks
    Mortgage Hunter
    [email protected]
    0425 228 985

    Profile photo of dr housedr house
    Join Date: 2001
    Post Count: 281

    Rentals, 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”.

    Profile photo of davidfemiadavidfemia
    Join Date: 2003
    Post Count: 89


    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

    Profile photo of MertonMerton
    Join Date: 2003
    Post Count: 1

    With 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.

Viewing 5 posts - 1 through 5 (of 5 total)

The topic ‘Which is better House or a unit?Tax Impact’ is closed to new replies.