New Ip Verse Second Hand Ip

Hi

Any advice about the pros and cons of buying new ips' verse second hand ips'. Should you have both in your portfolio?

Thanks
TGIF
 
Some advantages of a new IP

the tax depreciation is greater

less maintenance

more attractive to tenants


Some advantages of second hand IP

lower cost can allow you to buy additional IPS’

can renovate to add value
 
Some reasons we are favouring newish IP's or even building, for the next few:

We have highish income so want max depreciation.
We are time poor so want minimal maintenance issues.
Being time poor also doesn't easily allow us to renovate.
When building new, can be more assured there will be no old dodgy hidden work which will cost alot to fix, plumbing, electrical, illegal building, etc. warranty should cover too.
As mentioned, more attractive to tenants, hopefully better quality tenants.

I suppose it depends on your situation.
When I was time rich and very cash poor, I bought pretty much the worst dump on our street and renovated it extensively myself, now it's one of the best houses on the street, PPOR though.

Good luck
 
Some reasons we are favouring newish IP's or even building, for the next few:

We have highish income so want max depreciation.
We are time poor so want minimal maintenance issues.
Being time poor also doesn't easily allow us to renovate.
When building new, can be more assured there will be no old dodgy hidden work which will cost alot to fix, plumbing, electrical, illegal building, etc. warranty should cover too.
As mentioned, more attractive to tenants, hopefully better quality tenants.

I suppose it depends on your situation.
When I was time rich and very cash poor, I bought pretty much the worst dump on our street and renovated it extensively myself, now it's one of the best houses on the street, PPOR though.

Good luck

Thanks for the feedback, much appreciated

TGIF
 
Another advantage of buying second hand and renovating is that simple changes, fresh coat of paint, clean or new carpet etc can add value and allow an increase in rent.
 
if it is really really old, like 40 years, can you still claim depreciation?
Another thing is, we bought old house and try to do it up... and gees,,,, that is really hard work,,, n the job turn out to be so-so not very professional.. so at the end we had to pay someone to finish the job.. haha.. that was the experience with older house.. but it is ok, at least we tried... so now, we will try to look for new house instead...
 
When building new, can be more assured there will be no old dodgy hidden work which will cost alot to fix, plumbing, electrical, illegal building, etc. warranty should cover too.

I have purchased new and established and I have had more maintenance issues with the new properties than I ever have ever had with the established. The quality of the workmanship & the quality of the fixtures & fittings of today just don't cut it. I do like to buy new for the depreciation benefits, without this I would buy established, knowing the existing owner would have fixed up all the teething issues with the builder & replaced the initial cheap fixtures & fittings the builders fit with hopefully better quality items. I believe if you are looking at new, buy a property 1-2 years old.
 
New ones turn old, and your paying a premium on them...

Unless you buy a bulk batch of a struggling developer, below market value but this is rare and hard to pull off.
 
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