different options

[uncle_pennybags]

i am currently living in the first property i purchased and am currently renovating when the time and money comes along. (3bed, 1 bath, fibro 1/4 acre block)

i also have a block of land which i would like to build on. (thinking a kit home, 3 or 4br)

what would be some pros and cons of (in the long term).

building new house living in it, renting old house.

or

building new house renting it out, living in current house.

i currently owe 50k, house worth 100k, land worth 50k (rough figures)

 

[RumpledElf]

You'd need more information. At the minimum:

Your income (or your tax bracket)
Cost of renovation
Amount you could rent the renovated house for
Cost of building - and can you get a loan for that much if your income is low
Amount the new house would rent for

And depreciation on a new build is very good, but you'd get some if you renovate too.

If you're very low income (just a wild guess from the low values here) one of the better things you can do is be a serial renovator, and buy very cheap houses, fix them up over 2-3 years, sell them tax free, repeat.

 

[uncle_pennybags]

thank you for replying, here is some more information

income is around 30k.

renovating would set me back anywhere from 10k for a tidy up to 30k for a nice finish (mainly bathroom and kitchen as other rooms have already been done)

how the house is currently i would get around 130 - 140 a week rent.

building was going to cost 70k plus 35k - 50k depending on the kit. (this was a few months back now) and the bank would give me almost enough a few months back now (if i was receiving rental income from one property). its probably close to 12 months back actually.