old house vs new townhouse/unit

[wpggtom]

Hello,

Anyone have some good advice on what would be a better investment option. In an area that I believe to be a good investment, would an old house be a better investment than a new townhouse of around the same price. Any advice would be much appreciated. Cheers.

 

[alexlee]

Personally, I'd choose the old house. Not as much depreciation, but more future redevelopment potential.
Alex

 

[Twitch]

wpggtom, can you afford to hold an old house in the area you are targetting? With less rent and limited depreciation it can hurt. It's a good option for those with highish income or lots of equity in other property which can be used to fund the holding cost.

I had a similair decision and picked the old house option. Holding cost is about 3% of purchase cost, but the capital growth had been terrific in the past 12 months.

 

[firstmillion]

Personally, I'd choose the old house. Not as much depreciation, but more future redevelopment potential.
Alex

My golden rule is :

1. Buy worst house in the best lane.
2. Land goes up in value and building goes down.

So buy roperty with max land component. Chance of you going wrong are minimal

Cheers

 

[The Y-man]

Old House. Land component - as long as you can service the holding costs.

Cheers,

The Y-man