New build versus existing, which one is right for you? Obviously it all depends on the strategy, it might be different every time we go and purchase as an investor.
New Build:
Lower stamp duty costs so you're able to get into the purchase at a cheaper point or less deposit because you're only paying stamp duty on the land, and not the overall house and land.
It's brand new, so ideally going forward, the next five to ten years are pretty much maintenance-free. It's a brand new home, a nice fresh feel for the tenants and everyone involved.
Large depreciation. So maximum depreciation when it's at its newest in this form of a house, you get that for the next thirty years, but obviously the first ten years are the highest, which obviously if we've got a tax issue we've got some tax benefits there as a result of that high depreciation amount.
So there's the top three for a new build.
Existing property:
It's simple, it's straightforward it's right there, I'd go to an open home, I'll walk through the house I put in an offer I buy the property.
Any location around the country, you can choose any street any suburb etc as long as the house is for sale I've got it there to purchase straightaway.
I can get a tenant in, or a tenant may in fact be already in there so you know your rental amounts going forward, you can plan your cash flow around that.
So three positives for both of those strategies, both work depending on your situation you need to obviously talk to a specialist in that respect but stick to your strategy and execute.
If you need any more help on purchasing property, book a Sounding Board with John Pidgeon today!