Forums / Property Investing / Help Needed! / Does brick or fibro house matters for IP?

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  • Profile photo of @sydney@sydney
    Participant
    @-sydney
    Join Date: 2011
    Post Count: 17

    We are negotiating two houses in the same suburbs? One is nice fibro house with big land. The other is old solid brick house, smaller land. The total price of brick house is less but more expensive per sqm. We will choose one of them. As per investment view, would brick or fibro matters?. Any idea is appreciated.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    How old are they?

    Might be a Capital allowance consideration depending on the age.

    Also brick may require less maintainance.
     
    All depends on the actual numbers and what you are wanting to do with the property long term.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of DAMPropertyDAMProperty
    Participant
    @damproperty
    Join Date: 2011
    Post Count: 44

    Something else to consider may be whether the fibro house contains asbestos.  If you are thinking of knocking it down in the future then you may need specialised people to do it.

    DAMProperty | DAM Accounting Services
    https://www.damaccountingservices.com.au

    Profile photo of fWordfWord
    Participant
    @fword
    Join Date: 2009
    Post Count: 471

    Depends on how big the land this, IMO. What condition is the fibro house in? Does the land have subdivision potential if you buy the bigger block with the fibro house on it? I've read of some people buying a fibro house on a sizable plot of land, shifting the position of the house and then subdividing.

    Profile photo of Andrew_AAndrew_A
    Participant
    @andrew_a
    Join Date: 2003
    Post Count: 392

    The answer is ‘depends’ :)

    Plenty of very nice suburbs with renovated post war houses with fibro materials in Brisbane. I would be tempted by the more valuable land component, likely to get a higher yield on the brick house though combined with the cheaper list price should lead to better holding costs, fibro in itself might not be a deal breaker if the condition of the house is good.

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