Hi all,
What is everyone's views on building a new investment property versus purchasing an existing property considering the stage of property cycle we are currently in?
It depends on the situation. For eg :
What suburb?
What property size? (eg 1bedder versus 4 bedder).
What target market? (eg young professionals? Growing families?)
What price bracket?
If it were an established home, would you consider extending the property to add rooms?Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Thanks JacM
Am looking at building new 4 bed 2 bath in Townsville or Geelong, targeting growing families, spend about $370k to $390kHi Troy,
As a generalization, if you have the funds, AND can handle making the minimum payments while construction is taking place, the reduced stamp duty on purchase, and the maximum deprecation you can claim on a new place would sway me that way.Cheers
um… i think you'll struggle to build new in geelong for that price (just to get a plot of land big enough, with a knockdown house on it will set you back $200k ish)… unless you go with a house and land package in a new estate, or consider a double storey townhouse on a smaller plot of land.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hi JacM
I was looking at building in a new area maybe around Leopold areaYeah fair enough Leopold is doable. If you go ahead with this plan, be sure to get a Quantity Surveyor to do a depreciation schedule for you. It'll cost you about $500 and he/she will determine how much the property will "depreciate" each year and indicate what figure you can list on your tax return for the next however many years. This in turn earns you a tax refund. Without this the deal will be extremely ordinary. With a depreciation schedule it is better.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Thanks JacM
If anyone else can add any advice, that would much appreciated
Compare the new build with a similarly sized property in the neighboring suburb. Compare prices.
This will at least tell you whether the new build is over priced. What will it rent for? What will be the ongoing costs (for both).
The numbers will tell you which is better.
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