I have a simple question:
Is it a better investment buying an old house-40 years old but is 100 metres from beach and shops?(ie "Location location")
or is it a better investment:
Buying a new house in the same region but more in the "suburbs"/new estate?(ie "depreciation")Both properties are the same price and with tenants….old house seems to be in good condition.
Thanks and looking forward to feedback!
A new house won't be new in 20 years, but the other house will still be 100m from the beach.
It may depend on your investment timeframe and the views of each. A big difference between:
1. 100m from the beach and
2. 100m from the beach and views over the beach and waterI should have added that with significant FHBGs available for new home buyers, a 5 year old home appears significantly less attractive than a new build to a first home buyer. It will be a trap for many who lose equity on new homes. Why buy an older one when you can get the max grants for a brand new one. Until they stop building new houses, new build resales will always be difficult in Australia due to inequitable government policies that discourage "recent builds" being bought.
I chose the first option
will become water front due to global warming in 10 years… option 1
No question.The older house.You can manufacture equity through reno's.The extra $7k is small change compared to what you reap from the better position and reno potential
Actually buying a beach side property or a property near to the prime locations is a better investment
location, location, location…………………………always
Thank you!
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