Hi everyone,
I'm currently trying to decide between buying a renovated IP (10-15 years old) or a new one (1-3 years old). This is our first IP and I'd like to maximise the depreciation returns but I'm not sure if i want to fork out the extra $$ for near new. The area I'm looking in also has the new houses in less desirable (a bit further out) locations where the older more established homes have the better locations – closer to schools shops and transport but only by a couple of kilometers.I was thinking maybe getting a renovated older house (10-15years old) in a better location would be a good middle ground? I would still get high depreciation on the new fixtures??? And i would get a lower buying price – although it would be hiked up a bit for the reno.
What are your opinions?
Thanks,
MelYou dont have to buy brand new to be able to claim both Depreciation and Capital Allowances.
Anything post 87 will be good however obviously the newer the property the more left to claim.
Something 2nd hand within the last 10 years would probably be better value depending on where you are looking at.
Richard Taylor | Australia's leading private lender
But don't you get much higher depreciation on new houses / reno's because you can only claim on fittings for up to 5-7 years?
otherwise you just get the usual building depreciation??
Be suprised how many older houses have had internal fixtures and fittings upgraded which help with the Capital Allowance claim.
Richard Taylor | Australia's leading private lender
So is it worth trying specifically to find full renos? (This is in forest lake btw).
Financed many fairly new homes there for clients and many of them less than 10 years old.
Actually got one in Della Ricca Place only this week.
Richard Taylor | Australia's leading private lender
I guess that buying IP not only for depreciation value, but for other reason
Heres my thing, buy well, i.e. offer low, worst house in best street, then do a face lift reno like paint, garden, touch up bathroom and kitchen, maybe a picket fence if its not fenced, and bingo intant equity from buying well plus the reno. Then hang on to it and watch it increase further in value by letting time do it for you. My last property was one of these and I built nearly $100k into the equity by doing this.
Kindly Steve
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