New Villa or existing house

[write2abdul]

Hi Friends,

Wanted to get your inputs to decide buy my first PPOR with 1 kid who will going to primary school in 2016 and both wife and me working in the city

I'm looking at buying

1. New villa in South Seven hills to be completed in Jan - 2 kms from station - around 600k

or

2. 3 bed house in Marayong 1 km from station around 570k with 550 sqms of land.

With the new villa I get stamp duty concession +first home owner grant. But the buying cost is the same for both.

Need inputs for the following

a) Which one will have more capital growth in the future
b) If I decide to convert them into investment property after 6 months. Which one will help me towards Positive cash flow. I think the new property can be used to claim more depreciation?

Thanks in Advance

 

[skater]

It all depends on what you are looking for. A sparkly new home is always attractive, but that might not suit your needs.

If it were me, I'd go for the house because with a house, I can extend to suit my needs. I might be able to add a granny flat to add extra income. I can knock down & rebuild if I want, I don't need to seek approval for my pets etc, and most important of all, I don't have to answer to a body corporate.

But.....that's just me!

As for the property becoming an IP down the line, you WILL get more depreciation with a new build, but you will also have body corporate fees. With the home, you MAY be able to put a GF, with will give you depreciation and a second income stream.

So, again, if those two were my only choices on what to buy, again, I'd go the house.

 

[travelbug]

You seem unsure what you are doing with the property.

So the answer is- decide then you can make a decision.

ARE you going to make it an investment property in 6 months? If yes, it doesn't matter about your child going to school. What matters is the $$$ and cashflow.

If you are buying as a PPOR- will the villa be suitable (eg are you having more children?) and which one more suits your family needs.

You need to know BEFORE you buy.

 

[Rixter]

Need inputs for the following

a) Which one will have more capital growth in the future
b) If I decide to convert them into investment property after 6 months. Which one will help me towards Positive cash flow. I think the new property can be used to claim more depreciation?

a/ The one where the demand exceeds the supply more over time
b/ The one where your rental income & tax deductions are more than your expenses. Work that out and you have your answer.

Let us know what each one comes to.