buy brand new or not brand new

[noob01]

Hi,

I am new in this forum, sorry if this question been asked before.

I have been told that: if I buy a new property, I can get higher depreciation compared to buying old property.
I noticed there is a big difference in price between these two. Lets say a brand new property is $400K and 5yr old property is $350K, is it really worth spending 50K extra just to get more depreciation?

Thank you.

 

[j_p]

What will be the difference in price in another five years?
There will be depreciation on the five year old one too.
What else could you do with the 50k you saved now?

Answer those questions and have a think

 

[jackbak]

Lets say a brand new property is $400K and 5yr old property is $350K, is it really worth spending 50K extra just to get more depreciation?

Thank you.

No I wouldn't think so. Don't forget you will still be able to claim depreciation on a 5 year old property.

 

[noob01]

Thanks.
I thought so too, since I can still depreciate 5yr old property, which means that I can borrow less from the bank.

 

[geoffw]

There will be depreciation on the older property, although not as much for not as long.

On the older property you've got a shorter wait until maintenance issues appear.

But I'm no sure that those issues are worth $50k.