Toggle Menu Header



Should we buy an old house or new house from investment perspective?

7Mo ago 3 Replies 353 Views

Just starting out our investing venture. We are after positive gearing as that is what suits us at the moment? Just after advice about what people's experience about buying a older house which no longer can claim depreciation or is it better to spend that extra $80,000 to buy a newer house and claim depreciation. We are looking at long term investing. Thanks in advance for any advice.

Share on:
Peter Crompton Peter Crompton
1Mo ago
If you are after positive gearing then you would find that most often you would have to consider other factors in addition to New/Old Build such as Location, Price Bracket and Vacancy/Rental demand. 

If you are thinking positive gearing - you could still find a new house with positive gearing. And once you are in a property - new or old - the maintenance side of the equation would still be variable (some new builds could fail and may not be covered under warranty). You will have to work out your numbers and see what would fit your criteria. 

Simon Simon
7Mo ago
Mate my biggest mistake was investing with a focus on negative gearing. It put me many years behind . You just don’t get the returns you need on a new build to keep building your portfolio. You can also buy a house that has recently been renovated and claim that as a depreciation.
Anuj Anuj
7Mo ago
You could spend $50 extra on maintenance per week in an older property. Which can turn positive into a negative

Top Contributors Last 30 days

1 InvestAus
2 Anuj
3 Anjali

Related Posts

NSW: NSW residents are on the way out of the state

The permanent exodus of NSW residents to Queensland after the borders re-open looms as a key housing supply and demand issue for both states. The interstate migration could be on as soon as the Queensland premier Anastasia Palaszczuk loosens the restrictions, with plenty of time for people to think about it during the NSW lockdown. The scenario was raised in a report by the National Housing Finance and Investment Corporation (NHFIC) titled COVID-19: Australia’s population and housing demand. Most of the headlines after the report’s release centred on the impact of closed international borders on new dwelling demand across Australia. International border closures have effectively shut down net overseas migration, which has accounted for 59 per cent of population growth since 2007. The forecasters also looked at interstate migration premised on the theory that higher migration equals higher demand for property. Queensland’s attractiveness impacts employment prospects and house prices. It has been the relative house price differences between Sydney, Melbourne and Brisbane that have “consistently shaped Queensland’s interstate migrant intake” over the past 40 years. Get more details at: x Exodus of NSW residents to Queensland a major hous... The permanent exodus of NSW residents to Queensland after the borders re-open looms as a key housing supply and demand issue for both states.
23Hr ago 8 Views

Localities close to CBD with good schools

Looking for recommendations for localities close to CBD with good schools and shopping options. Have heard about Balmain and Surry Hills....Are they good? 
1D ago 6 Views

NSW: The Central Coast is facing unprecedented demand for rental properties

According to local real estate agency Brand Property, recent spikes in demand aren’t likely to slow down, with the region reporting a vacancy rate of just 0.7 per cent. Already, the agency has reported a 196 per cent increase in tenant applications between May and August compared with the same period last year. It’s a huge contrast to the reported figures in Sydney, where the vacancy rate is now the highest in the country, at 3.5 per cent, according to SQM Research. But it’s not only lifestyle driving an uplift in rental demand, according to Brand Property, which has also pointed out a persistent trend of renters downgrading their property in the cooler months, likely due to job losses and pay cuts. It means “all areas are proving popular at the moment, because the more expensive suburbs are still cheap compared to Sydney”, the agency said. It noted a five-bedroom architectural home in Terrigal was recently rented for $1,100 per week after being listed for just two days. Source: x COVID-19 boosts Central Coast rental market The Central Coast is facing unprecedented demand for rental properties as cityslickers leave Sydney in droves.
3D ago 228 Views

NSW: Demand for property has shown signs of returning to pre-COVID-19 levels

Demand for property has shown signs of returning to pre-COVID-19 levels across much of Australia as households pump money they would have spent on travel or entertainment into housing instead. Figures from the Australian Bureau of Statistics revealed mortgage approvals have been tracking up since the market hit a trough in May, despite the weaker economy and mounting job losses. This increase was largely from owner occupier spending, particularly from first homebuyers. Owner occupiers spent an additional $1.2 billion on real estate between June and July, with about a fifth more first homebuyers in the market compared to May.“There are hundreds of Aussies with a deposit saved, keeping a keen eye on the housing market and ready to pounce. It looks like the declines seen thus far in the eastern capitals may be softening, and the housing market could very well turn a corner in the next few weeks.” Source: x Mortgage approvals on the rise as more buyers repo... There was widespread fear of a coming “cliff” for the property market but it has instead been recovering due to a trend most economists didn’t anticipate.
4D ago 109 Views

NSW: The shift towards regional living continues at pace

Regional property markets are seemingly benefitting from COVID-19, as the pandemic accelerates the trend of city dwellers relocating to regional areas. While some capital city CBD markets are recording double-digit rental vacancy rates, with Sydney CBD and Melbourne CBD at 12.9 per cent and 10 per cent respectively, renters hunting in regional areas are facing slim pickings. In NSW’s Blue Mountains, a record-low of only 0.7 per cent of the area’s rental property market were vacant in August, nosediving from 2 per cent in March, the latest SQM Research data showed. “The shift towards regional living continues at pace, largely at the expense of higher inner-city rental vacancy rates. I suspect there will have to be a high point in this move soon,”  Continue reading at: x City dwellers flock to regional property due to CO... Regional property markets are set to benefit from COVID-19, as the pandemic accelerates the trend of city dwellers relocating to regional areas.
5D ago 12 Views

Investors have remained upbeat during the COVID-19 outbreak

The study showed that around three in five investors still think it is a good time to invest in residential property, with roughly 77% saying they are not concerned about any potential price declines. In fact, close to half of all investors have plans to purchase a property in the next six to 12 months. "While there is no doubt that 2020 has been one of the toughest in living memory for everyone around the globe, property investors have remained resilient in the face of the unprecedented uncertainty that we are all experiencing," said Peter Koulizos, chairperson of PIPA. "It's no surprise that COVID-19 made many people reconsider their lifestyles, with nearly one-fifth of investors indicating they are contemplating a move," Koulizos said. Investors are also thinking of moving their principal place of residence to regional markets in New South Wales, Queensland, and Victoria. Source: x Investors eyeing regional markets Three in four investors are not concerned with potential price declines, study shows
6D ago 12 Views
8 online
Arun Radhakrishnan
swopnil kc
Anoop Singh
and more ...