New unit vs older unit (1997)

[serrz]

Hello

I am currently looking at two potential investment properties

1) New apartment - Studio @ $475k, rental approx $500pw.
2) Older apartment - 1 BR @ $450k built 1997, but good condition and recently renovated. Rental @ $570pw.

Both are centrally located and convenient.

From an investment point of view, which one is more appealing? Would the depreciation / capital allowance benefit for the older apartment be much? The new apartment is approx $12k in the first year.

Thanks

 

[Propertunity]

The older unit is almost certainly he better investment depending ......
How much are the strata levies for each?
What are the floor m2 areas?
How many units in each development?

 

[dog]

The older unit is almost certainly he better investment depending ......
How much are the strata levies for each?
What are the floor m2 areas?
How many units in each development?

Very valid points.
Older apartments are often larger and therefore more sought after, although people (tennants and landlords alike) are also drawn to new developments as an easy update in decor. Horses for courses.
Check the owners corp docs carefully to find any large sinking fund or repair costs coming up. Newer developments can often have higher owners corp costs with gyms and pools etc that some of the older developments may lack. Also bear in mind that the depreciation benefits of the newer property may be offset by massive owners corp costs.
It's always attractive when the depreciation is very high for a newer property, however if you go with the older but renovated property, be sure to contact Scott (for a depreciation schedule) to get the best from it...
It sounds like the developer may already be supplying the schedule for the new apartment?

 

[Rolf Latham]

Hello

I am currently looking at two potential investment properties

1) New apartment - Studio @ $475k, rental approx $500pw.
2) Older apartment - 1 BR @ $450k built 1997, but good condition and recently renovated. Rental @ $570pw.

Both are centrally located and convenient.

From an investment point of view, which one is more appealing? Would the depreciation / capital allowance benefit for the older apartment be much? The new apartment is approx $12k in the first year.

Thanks

studio will likely be harder to get decent lvr finance on.

That may limit its future buyer spread, and thus limit appeal and therefore cap gain ?

ta
rolf

 

[Melbournian]

i would avoid the studio and go for the older unit

 

[Jake Milne]

Go for the older unit.

 

[DaveM]

Since when is a 1997 built unit "old"?

 

[boomtown]

Is there a difference with parking?

I would go the 1 bedder.