Werribee 25 year 2 storey 4BR house 650s IRR vs new house 4BR 350sqm Tarneit

I am looking for two properties and requesting for inputs/suggestions. One is in Werribee victoria with 4BR two storey house irregular land of 600sqm, 30 yrs old.
Another is land+home in Tarneit with 4BR 350sqm single storey.
What should I consider as an IP to have a decision. Purchase price and Rent seems same. I am ok to hold for 5-8 years.

 

Do you agree that land appreciates and buildings depreciate?

 

What part of Werribee is it in? Large swathes of Tarneit's a dump.

 

Its in south werribee near racecourse

 

I agree. So does it mean you recon we should go with bigger land although its irregular block.

 

More saying that I don't go for new H&L for that reason.
Why only 5-8 years? What would you do with the money after selling and paying taxes?

 

The south bit of Werribee is the 'good' side but the most convenient bit is between the secondary college and Watton St. Near the racecourse not so handy but probably still OK. And the council has been doing stuff in Werribee CBD. There are some nice places near the river. North of the railway the west bank of the river is more highly valued than the east bank with better housing stock. Although the east bank is convenient.

Go back 10-15 years and the older 2 storey place will have been about half its current value. Whereas new places in Tarneit would be fairly similar to now. As for the future, who knows but larger blocks are getting scarcer in the area.

The newer place will have lots of depreciation with high tax benefits. So holding costs may be lower. But capital gains prospects likely less (if the past record is anything to go by, along with the land value component).

I wouldn't pick Tarneit unless you can walk to the station and even then all the traffic and the space devoted to parking makes that difficult.

Longer term Geelong rail upgrades, as announced in the state budget, is likely to benefit Werribee. Geelong Fast Rail | Rail Projects Victoria

 

Is 660 - 680sqm considered a large block for the area? Sitting near the river towards North/West of Werribee

 

Hard to compare without the actual addresses and seeing the houses.