"New Land + Construction" Loan vs "Buy Established & KDR" IP

I am considering 2 Investment scenario:

Option 1 : "New Land + Construction" Loan vs
Option 2 : "Buy Established property & KDR"

Is Tax deductible expense treatments significantly different for above ? Like Interest Costs on new purchased Land & lengthy Construction (8+ months) are not deductible (& land tax for the year), while if I purchase Established Property & then decide to KDR can claim all expenses (Interest, Land tax etc.. even during Construction period?). Or are they both treated the same during Construction (while not generating rental)

 

There is no deductibility of you construct UNTIL the property is completed and with a occ cert AND available for rent. The holding costs cant be ignored. If you buy a established property and KD this is exactly the same. The KD creates vacant land. If the dwelling is a dump it may also be classified as if it was vacant land. The tax laws were changed from July 2019 and are referred to as the vacant land holding rules.
Deductions for vacant land

The exception is buying a completed and finished dwelling. Interest incurred rior to settlement may be deductible under the steeele's priciples. However for new builds this case no longer applies. Many ask the question if they resell and the business exception. In most cases this WONT be met as the sale may not be a business activity but may only be a isolated profit making matter. Isolated profit making isnt a exception.

Or for some owners. eg a company owner. That said without other income that deduction may merely just defer the tax loss and if the new dwelling is to be rented the depreciation etc may mean a tax loss for several years anyway.