Looking at invest and am confused as to what way is best..old house closer to Sydney CBD (bout 14km) eg ermington, rydalmere or brand new house and land package in QLD (eg bellmere) or Melbourne??
Really need some opinions as to what is best? pros and cons?
rafters, this is really about long term CG, low vacancy and risk management.
Older in more established suburb:
PROS:
1. Known CG - it has a 'history'
2. Infrastructure already in place
3. In demand from tenants - rental demand / low vacancy
4. Quality of tenant
CONS:
1. Maintenance
New in more out-lying area:
PROS:
1. Depreciation
2. Low maintenance
CONS:
1. Quality of tenant
2. Higher vacancy (usually)
3. Lack of infrastructure
4. Developer has usually taken the first few years CG in his profit margin
5. If the market tanks, this type of product falls faster & harder
For my money it is always better going for older in established suburb. You can also do a small reno to make it even more attractive to tenants (this in itself gives you depreciation and takes care of future maintenance issues if done properly).
Possible exception is brand new infill development in an established area.