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New House and Land or Established

Discussion in 'General Property Chat' started by Tony, 13th Jul, 2016.

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  1. Tony

    Tony Member

    Joined:
    28th Jun, 2016
    Posts:
    14
    Location:
    Sydney
    Looking into two different options
    1. Buy land, build house, tenant
    2. Buy a similar house to the above but 5 years old

    What are the pros and cons of each option? Which have/would you do?

    Thanks
     
  2. drg86

    drg86 Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    273
    Location:
    Newcastle
    I would go option 1
    Pros: Can be cheaper, more depreciation, tenants like new, design to suit demand
    Cons: time to build, may be further away from town/CBD/transport if in new estate
     
  3. ashish1137

    ashish1137 Well-Known Member

    Joined:
    12th Sep, 2015
    Posts:
    309
    Location:
    Sydney
    I would compare the price.

    1. How much I am getting the already established property?
    2. Is there any equity in the new build, when you finish it, what will be the end cost and what are similar properties getting sold for?
    3. How about stamp duty? Usually for new builds, you inly pay sd on land and not build as compared to established house.
    4. Would you be able to negotiate on the established property well below the price ofsimilar properties?
    5. How is the build quality of the existing house? Is it comparable/worse/better than the new build you would be planning?
    6. Distance of both properties from amenities?

    The above points will help me to decide.

    Regards
     
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  4. Cactus

    Cactus Well-Known Member

    Joined:
    18th Jan, 2016
    Posts:
    986
    Location:
    Melbourne
    Well said!
     
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