Hello all,
A question for you.
If you had the opportunity to purchase an old home i.e. 50yrs on an large parcel in the heart of a town or a newer home (say 5yrs) on a smaller allotment (say half the size) a couple of streets out of town which one would you buy (same price). Yield is much the same.
Would I be better to buy the larger lot based on the potential value increase I.e. land appreciates/ buildings depreciate or purchase the newer home for depreciation benefits.
I currently earn $85k gross with limited tax deductions.
I would buy whichever had the most potential to increase in value. That is the hard part -working out which, and it is not necessarily just land content that determines this.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks Terry, anyone else got any tips for me?
Everyone's definition of heart of town varies – is there the likelihood of rezoning to townhouses/units/commercial etc? You are faced with possible demo of the older property or risking overcapitalisation if you do too much work to it if there are plans before council to rezone. So speaking with the council's town planners may be a good start to see if they are under pressure to increase densities etc.
On the other hand, the other property may be set and forget. Who knows?
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