- lucigooseyMember@lucigooseyJoin Date: 2009Post Count: 42
I am trying to work out which one is going to be the better deal, to but
a) 3 years old 1 bedroom apartment in a medium size complex
b) Old established 1 bedroom apartment in a smallish complex
I cant recall all the tax benefits and write off potential for a new property, both are in the same suburb and I know there are pros and cons for both. I know you can depreciate the 3 year old for X amount of years and there fore my tax benefeit will be better…..how long does this go for? and do I depreciate the inside's or the building as well.
I am trying to do the figures on a spreadsheet to see which one costs me less out of pocket
thank youangelinsydneyParticipant@angelinsydneyJoin Date: 2011Post Count: 270
I'm bias towards houses. Having had both, I'm partial to houses as the on-goings costs is slightly less. Strata fees and corporate sinking funds can be a deal breaker.
AngelJamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069
What’s the price difference between the two? Are you paying a much higher premium for the newish property?
With older stock you’re generally able to purchase at a lower price and add value to (something that’s usually not achievable and/or necessary with something new).
The depreciation will be better on the new property. However, you may be surprised by how much you can depreciate on the older one (particularly if you do carry out renos).
JamieTerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
It shouldn't matter how old they are. What matters is which one is going to give you the most profit. Tax is one small consideration, but the main one should be which will give the highest capital growth and the highest rental yield.
An older property may mean slightly less depreciation over the long term. This shouldn't make much difference to you as it also means items will wear out quicker and need replacement quicker too.