Hi investors,
I'm a new investor and am exploring different options for my next IP. This forum is very very informative. However being a naive, I have a basic issue.
After reading this forum for about 3 months, I noticed that almost nobody here talks about buying a new house (0 to 2 yrs old) or a house & Land package. From my limited understanding, buying a new property can easily provide +CF by negative gearing thru' depreciation atleast for the first few years (I'm in 38% tax bracket). And in those few years this property increases in value, giving you the equity for your subsequent purchase. Is it an outdated strategy? If yes, what is the current one and what is the logic?
Pls keep in mind that I stay in a regional area (Whyalla) with a full time job and am investing in Adelaide, so I don't have time (and also skills) for the renovation, negotiation, feel of the area etc.
Thanks
I'm a new investor and am exploring different options for my next IP. This forum is very very informative. However being a naive, I have a basic issue.
After reading this forum for about 3 months, I noticed that almost nobody here talks about buying a new house (0 to 2 yrs old) or a house & Land package. From my limited understanding, buying a new property can easily provide +CF by negative gearing thru' depreciation atleast for the first few years (I'm in 38% tax bracket). And in those few years this property increases in value, giving you the equity for your subsequent purchase. Is it an outdated strategy? If yes, what is the current one and what is the logic?
Pls keep in mind that I stay in a regional area (Whyalla) with a full time job and am investing in Adelaide, so I don't have time (and also skills) for the renovation, negotiation, feel of the area etc.
Thanks