NSW Investment property in Edgeworth NSW

Hi guys, just wanted to know your thoughts on buying a vacant land in the suburb of Edgeworth which is in Lake Macquaire or greater Newcastle and build a new house. Goal is depreciation, positive cash flow and capital growth in 5 yrs.

For building I have 2 options:
Option 1: A dual occupancy single storey house on a block of 500m2 land. main house 4-2-1, aux attached house 2-1-1. Build cost $1.05-1.1M, Rental estimate $1000-1150
Option 2: A single storey 4-2-2 house on 450m2 land. Build cost $875K, Rental estimate $650-700

this would be my first investment property. I have equity (20%) from current owner occupier house which will be refinanced to put deposit on the new house. Thanks in advance.

 

Forget about depreciation and buy an older house as close as possible to Newcastle's CBD; you can still add a granny flat and chase dual income if you want.

In heavy traffic it takes around 45 mins from the new estates in Edgeworth to Newcastle's CBD...

 

Depreciation should never be your goal and reason for your to invest. Think what value would your investment have if you stopped working for any reason or depreciation claims are no longer accepted by ATO?