New house on small block or renovated old house on larger block?

Discussion in 'Where to Buy' started by Green Grass, 20th Jun, 2015.

  1. Green Grass

    Green Grass Member

    Joined:
    23rd Mar, 2015
    Messages:
    22
    Location:
    Perth, WA
    Hi all,
    I'm about to spend $500k on an IP, around 15km from Brisbane CBD. I have choices within this budget of a newer house (15 years old) on a 450sqm block or a renovated older house (pre 1985) on a 650sqm block. Current regs in Brisbane are than you can subdivide on an 800sqm block and also on a block in excess of 600sqm if you are 200m from shops.

    Which would people prefer? Is there any point in buying a larger block you cannot develop on? The newer house will I expect have higher depreciation benefits and therefore lower holding costs.

    I appreciate value is in land, but tenants rent bedrooms and not high maintenance blocks/gardens. So is it better to avoid the larger block you cannot develop on or is it still better because the land will have higher value than the smaller block.

    Thanks
    GG
     
  2. strongy1986

    strongy1986 Member

    Joined:
    23rd Feb, 2012
    Messages:
    954
    Location:
    Beaumaris
    The problems with the 405 blocks is the 10 metre frontage.
    Long term you will find a 600 block more desirable

    You may not be able to subdivide it but I guarantee you will be able to develop it in the future

    Or someone else will

    On the new house old house debate , in 30 years what will be the better house?
    I think the old high sets will be in favour- the design will stand the test of time