Happy easter! I few months ago there was a BIG meeting where Ian Somers was supposed to have spoken about whether new or old props where the way to go. I think he was going to use his software to demonstrate his point. Did Ian reckon older props are better because they're cheaper and that pushes up the yeild? I couldn't go so I don't know.
New or Old?
- Thread starter brettb
- Start date
Welcome, Brett.
I wasn't at the meeting (though I did enjoy Ian's PIA presentation at a BIG meeting about two years' ago). I suspect Ian's findings would be similar to Jan's books.
Maybe you have read "More Wealth from Residential Property" or maybe an earlier book? I think the message from the books is to think of new or old as different, rather than one being better than the other.
It is more which one suits the investor and their strategy & circumstances, at any given time. It is most likely, I suspect, that an investor will have both types in their portfolio. Focussing on either one can be successful.
The software model is a useful analysis tool - great for basic 'what if' considerations and also finer details such as the impact of depreciation.
Do you plan to go to future BIG meetings?
regards,
I wasn't at the meeting (though I did enjoy Ian's PIA presentation at a BIG meeting about two years' ago). I suspect Ian's findings would be similar to Jan's books.
Maybe you have read "More Wealth from Residential Property" or maybe an earlier book? I think the message from the books is to think of new or old as different, rather than one being better than the other.
It is more which one suits the investor and their strategy & circumstances, at any given time. It is most likely, I suspect, that an investor will have both types in their portfolio. Focussing on either one can be successful.
The software model is a useful analysis tool - great for basic 'what if' considerations and also finer details such as the impact of depreciation.
Do you plan to go to future BIG meetings?
regards,
Hi brettb.
When people ask is new better than old, I like to ask, how new is something new for. In other words, if you purchase a new property today as opposed to say a 10 yr old property, in 10 more years, one will be 10 yrs old and the other 20 yrs old. Not a big difference.
Sure you get your depreciation with a newer property, just thought I'd give you something to think about.
Personally, I've bought both new/ish and older properties. It comes down to what the figures look like on each deal.
Regards
Marty
When people ask is new better than old, I like to ask, how new is something new for. In other words, if you purchase a new property today as opposed to say a 10 yr old property, in 10 more years, one will be 10 yrs old and the other 20 yrs old. Not a big difference.
Sure you get your depreciation with a newer property, just thought I'd give you something to think about.
Personally, I've bought both new/ish and older properties. It comes down to what the figures look like on each deal.
Regards
Marty
They worked out to be the same.
The older IP's tended to be closer in the city so better capital growth.
The newer IP's were more suburban with less capital growth but had lots of lovely depreciation and less maintenance costs.
The older IP's tended to be closer in the city so better capital growth.
The newer IP's were more suburban with less capital growth but had lots of lovely depreciation and less maintenance costs.
Depends. In our suburb, people want older Queenslanders. There are parts of the suburb that are 1970's brick and those streets never held the values of the streets of Queenslanders. I suspect that as "modern" is in, that may change or already have changed as people change the 1970's look with "modern" facades.
In fact, after living in old houses all my married life, and in fact renovating our 1950's house backwards to look like a 1930's house, if I had my time again, I'd take it forward.
So, I'd say a modern brick house in among Queenslanders (for example) will not have the same value, but it would depend very much on the suburb.
I find the changes in our streets quite interesting to watch, but it probably has as much to do with my changing tasts as well.
Wylie.
In fact, after living in old houses all my married life, and in fact renovating our 1950's house backwards to look like a 1930's house, if I had my time again, I'd take it forward.
So, I'd say a modern brick house in among Queenslanders (for example) will not have the same value, but it would depend very much on the suburb.
I find the changes in our streets quite interesting to watch, but it probably has as much to do with my changing tasts as well.
Wylie.
Hi Brettb
I would vote for new but preferably new because you have built and can therefore access the equity. I have just finished the first of 2 houses on a block that has been sub-divided which gives me $100,000 equity on top of which I have achieved a rent of $350 per week which surpassed my expectations as max rentals in the area which comprises of mainly older properties would be around $250 per week. When the second house has been finished I expect another $80,000 - $100,000 in equity with rent probably around $300 per week as it will be a single storey smaller house. This method suits me as I have plenty of equity built in if the market goes the wrong way plus I can keep going ad infinitum without waiting for values to increase sufficiently before moving on to the next project.
Different people use different strategies and everyone finds their own way. I looked for a fast track as I feel I have catching up to do because I didn't educate myself at as young an age as I should have!
Sparky
I would vote for new but preferably new because you have built and can therefore access the equity. I have just finished the first of 2 houses on a block that has been sub-divided which gives me $100,000 equity on top of which I have achieved a rent of $350 per week which surpassed my expectations as max rentals in the area which comprises of mainly older properties would be around $250 per week. When the second house has been finished I expect another $80,000 - $100,000 in equity with rent probably around $300 per week as it will be a single storey smaller house. This method suits me as I have plenty of equity built in if the market goes the wrong way plus I can keep going ad infinitum without waiting for values to increase sufficiently before moving on to the next project.
Different people use different strategies and everyone finds their own way. I looked for a fast track as I feel I have catching up to do because I didn't educate myself at as young an age as I should have!
Sparky
