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From: Todd Dick
Thanks everyone for your responses from yesterday’s question (to buy 1st place as an owner-occupier or to rent – from advantages of each, which one outweighs the other? Currently investigating some of the responses provided.)
I have another quick question – for IP, is it better to buy new or old?
A few arguments that have been suggested are:
1) Fairly new IP – this allows larger deductions / depreciations to be made and that the property has fairly low maintenance
2) Older IP – with a little renovation (borrowing costs above the purchase of the property) can greatly improve the value of the property and improve rent return to help neutrally gear the property.
I know that buying either new or old IP may be fairly debatable with each offering both pros and cons – but can someone reply as to why they think new or old is a better approach.
Thanks,
TD.
Thanks everyone for your responses from yesterday’s question (to buy 1st place as an owner-occupier or to rent – from advantages of each, which one outweighs the other? Currently investigating some of the responses provided.)
I have another quick question – for IP, is it better to buy new or old?
A few arguments that have been suggested are:
1) Fairly new IP – this allows larger deductions / depreciations to be made and that the property has fairly low maintenance
2) Older IP – with a little renovation (borrowing costs above the purchase of the property) can greatly improve the value of the property and improve rent return to help neutrally gear the property.
I know that buying either new or old IP may be fairly debatable with each offering both pros and cons – but can someone reply as to why they think new or old is a better approach.
Thanks,
TD.
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