Which One ??????

[molly1a]

Looking at 2 houses they are very different in the same town not sure which one to go with
1 : Brick tile older house built early 80s it is 3/1/5 would buy for 225K would rent for 285 per week no work to be done current young owner have done it all it is very nice/ modern the only thing you could do later would be new bathroom it is in the older part of town
2 : Blue chip board painted / metal roof 2005 built it is 3/2/2 would buy for 285K would rent for 330 per week it is surroundeb by brick tile houses supposedly in a prestigious part of town if we bought no work to be done at the moment but in the future could paint exterior , front fence landscape a bit (there is a 4/2/2 brick /tile house in same street up for 395K at the moment)

Cant decide is there any questions I could ask etc to help us make decision

 

[DaveM]

First is higher gross return at 6.5. Second is lower at 6% but much better depreciation.

What are the growth forecasts for the town? Neither have returns that excite me, you can get much better elsewhere, so cg forecast had better be good.

 

[TheShuffler]

Can you buy both? If there is some good depreciation on both (the older due to the young couple having done the renos / the newer one due to it's age), then they should be cashflow neautral / positive at those rents?

 

[molly1a]

The town has a growing population, national businesses, affordale real estate a proactive council lots of projects happening
Not keen on buying 2 in the one area would like to purchase one of them,

 

[The Y-man]

Land components?
Feng Shui? (orientaiton etc)

The Y-man

 

[Shahin_Afarin]

I would be looking at:

1. Zoning
2. Land Size
3. Land Measurements
4. Location

This would impact future development strategies (if in fact that is what you are looking to do down the track).

Regards

Shahin