Building Age

[tropic]

I just like to hear opinions from people here.
I only have 1 IP and the home was built in the 70's. It is in Craigie WA.
It looks old and out dated now.
I've been thinking about selling it and buying a newer one closer to the city.
It is not a good time to sell but because I am going to buy on the same period so I should get the benefit on my purchase too. It should even out?

The IP is not located in a rich suburb so knocking it down and building a new one will put the house at the top of median price for the suburb.
The block is a single residential block (650 sqm).
Most building were built around the same period and not many people are rebuilding their houses.

What will be a good option for me?
Do you find buying a new(er) houses is better? Less maintenance I presume.

 

[Wunderbar]

So you're basically trying to move closer to the CBD yeh? I think people nowadays put a premium on an unrenovated home because of all those DIY reno shows. So best for you to leave it unrenovated and just purchase a renovated house in a better location.

 

[Blair]

The biggest benefits of newer homes (or even renovated homes) is the tax benefits of depreciation.

New/modern/renovated homes are also in greater demand and renters will pay more for them than they would for an older house in the same area.

 

[Wunderbar]

I disagree. Buying a renovated house (we're not talking crappy burbank things) easily offers more value than buying an unrenovated equivalent. People always place a premium on unrenovated properties nowadays....

 

[wobbycarly]

I just like to hear opinions from people here.
I only have 1 IP and the home was built in the 70's. It is in Craigie WA.
It looks old and out dated now.
I've been thinking about selling it and buying a newer one closer to the city.
It is not a good time to sell but because I am going to buy on the same period so I should get the benefit on my purchase too. It should even out?

Unlikely.

You'll pay agent's fees on the way out, and stamp duty on the way in. You may also be liable for GCT.

The IP is not located in a rich suburb so knocking it down and building a new one will put the house at the top of median price for the suburb.
The block is a single residential block (650 sqm).
Most building were built around the same period and not many people are rebuilding their houses.

What will be a good option for me?
Do you find buying a new(er) houses is better? Less maintenance I presume.

 

[BuildingBlocks]

New/modern/renovated homes are also in greater demand and renters will pay more for them than they would for an older house in the same area.

However you will also pay more for that newer house in the same area, so returns are going to vary. If it we're not the case, nobody would buy "used" houses

 

[Melbournian]

The biggest benefits of newer homes (or even renovated homes) is the tax benefits of depreciation.

New/modern/renovated homes are also in greater demand and renters will pay more for them than they would for an older house in the same area.

provided you on a high income to reap the benefits of depreciation.

 

[tropic]

I am still don't know what is the best option.
Keep the IP and rent it until it gets too old and nobody wants to stay there anymore. Then do a cheap reno to make the inside nicer.

I really don't what is the best move.

 

[Wunderbar]

If it's live-able and can get a decent rent, don't bother renovating it. Save that money and go buy a nicer house for yourself to stay in for your PPOR.

 

[Melbournian]

If you're doing basic renovations that has no a value added - i wouldn't do it. If you're doing structural stuff like adding a bedroom or adding an ensuite. then go for it - u will see a jump in the valuation or sale price. This is both applicable to apartments and houses.