Which one will you buy?

[sanjayag]

Hi all,
I've got a questions for the PI gurus.
In "Elizabeth South" subarb of Adelaide, I have got 2 choices to buy.
1. $250K brand new house, 360 sqm land, 3 bedrooms, 1 bathroom, single garage.....rent potential is $250 pw.
2. $210K 40 yrs old house (average condition), 3 bedrooms, 1 bathroom, single carport, 905 sqm corner block with potential subdivision (stcc)........rent potential $200 pw.

Which one should I go for? Pls answer with the following in consideration:

a. I earn 100K gross, so in 38% tax bracket.
b. I'm looking for best value for money, suppose I sell it in 5 yrs.
c. At present this subarb is notorious for low socio-economic zones, but is sorrounded by all the upcoming subarbs with lot of new housing development, so I think this subarb will also come in full light in 5 yrs time.

Thanks

 

[craigb]

box number 2 for me every time.

 

[gg1965]

No question and no debate. go for option 2.

Large Corner block. subdivision potential.

What are you waiting for?

 

[Propertunity]

No question and no debate. go for option 2.
Large Corner block. subdivision potential.

Yes, another vote for #2 along with craigb.

 

[Cherry Pro]

Hi - I'd go with the rest here but do realise that all the former posters are seasoned property investors.

Also, with the second option ..think you could do better with your rental yield. Our 40 y.o. 3 bed semi in Eliz Downs is bringing in $195 pw..a standalone house on a large block should do better.

Get a good PM to manage and you'll have better tenants.

Good luck !