On the New vs Established topic, as an investment property (not owner occupier): That's all well and good to say the building depreciates and the land appreciates, which is obviously the case. However, when it comes time to sell the (what was a) brand new property, if you decide to do so, the "depreciation" of the house really isn't considered by the market/purchaser. If what I was saying was incorrect, you would see 20 year old properties that are severely discounted when compared to new properties are also being built in the area, but you don't. In fact, you generally see that house+land packages are generally cheaper than to buy established (not always the case, though). Furthermore, not having access to that extended amount of depreciation in an established property may actually harm you, because the depreciation of the house allows you to claim against your taxable income. Without that, you can only claim your much smaller expenses. As an investor, brand new properties generally command higher rents, have less maintenance, you can depreciate more against your taxable income, are cheaper to build than to purchase an established property, and you pay much less stamp duty (only on land). Obviously this comes with the pre-condition that you buy correctly, in a good location, with good economic/growth factors, etc. But, providing you do that, brand new property is a much better investment for investors who are buying their first or second investment property. Happy to be challenged on this, but I can't see how Jeremy could make that claim.
Sounds great, depends if your buying a home to Live in or as an investment. Doesn’t take a genius to work out anyone can live in a shit hole that can have growth for land value, I’ll take quality of life living in a beautiful home thanks, enjoy your shit box 💪🏼
What do you think would happen if the cash rate gets to 5%? Mortgage rates up to about 7%? Obviously borrowing capacities would reduce so buyers like myself are going to have less budget to buy as prices are falling. Doesn’t really change what I can afford to buy.
Hey I'm sorry not sure if I heard you cover depreciation report for investors. I have financial friends who say investors are better buying a newer house further out of town because you can claim higher depreciation for their tax rather then old house closer to town.... Another great video some excellent tips 👌
Thanks John, that's a good question and might be wise to compare the property value of other similar properties that have the gas pipe compared with those that don't.
Trillions went in the money printing artificially spiking prices with sugar rush. Now the Fed who know may continue using interest rates taking the easy money out of the system. This by rights should have the opposite effect. But who are we to say? They won't let the free market correct.
Question: I am about to go to the market for my first home, but was wondering with 100k deposit, can you purchase a multiple homes (one for living and the rest for investment) with one home loan? If yes, how can be done, knowing that purchasing investment property requires 20% deposit and purchasing a home to live in requires 5% to 20%? Can you please assist?
Thanks Peemun, each purchase would be set up separately. Effectively you'd be able to lend up to 95% on the home to live in and the investments up to 90%
Don’t do it, you will lose everything. Houses are way over inflated, when the crash comes & banks want their money, they will take your home & you will still owe them because your loan exceeds the value of the property. Next year is going to rock the economic world. Wait.
@@-xyz-012 Thanks bro, the world as we knew it is getting harder and more difficult. At our childhood, we never had all these issues. God helps us all.
Townhouses aren't too bad, a little better than units, but they're kind of cut from the same cloth. From my perspective, it depends how you balance everything and what you're expecting from the property. You will have things like body corporate to deal with, which is a pain. At the end of the day, owning all the land is the best situation to be in, but if you're priced out of the market for a house and land package, a townhouse might be ok. A better situation would be to buy the land and build a duplex. That way you own all the land, you can then either rent out the other side or sell it off, and knock a very large chunk off of your mortgage. Then there's also not too many chef's in the kitchen when it comes to "body corporate" type issues.
none of this makes sense since CORONA - market is way over valued. old buildings worth more than new because you can't build in a timely manner. hopefully it will correct once supply of land and building material ease.
I am interested to know the Brand and Full Details of Jeremy Shepperd's Wireless Headset. It seems to be working perfectly for Long calls and Vlogs / Podcasts.
Hmmmm, not all correct, based on my experience investing in new developments like Providence Ripley have paid off a huge amount, we have almost double our money! Buying new also has less issues and maintainence with house, lasts much longer than an old house. Some of what is stated is correct but hes stuck in the old school ways 🤣
Agreed. See my comment, probably reiterates exactly what you think. It certainly does sound like older school thinking, which isn't really applicable in the economy we have today, as it's very different than the Gen X / Boomer economy.
In the last 2 houses I rented one was older in a good area but we paid less rent and the place upon further inspection was actually falling apart. The landlords felt we were being difficult tenants when we informed them of issues like a broken tap in the shower. Turns out that broken tap was leaking inside the wall and did massive damage to the wall and sunk a foundation.... They tried to blame us untill we pointed out the emails 9 months ago asking for it to be fixed. We weren't even pushy with a few reminders between and on inspections. The house after that was in a crappy suburb but was very new, based on sales data is was way cheaper for the landlord and we paid a much higher rent which we didn't even mind as it had way more space, wasn't dangerous, was way more efficient so our bills were way cheaper and we had way more room. We even paid them for minor damage that in an older house we would have argued against. The first house would have had to be negatively geared whereas the second could pheasibly be positively geared.
Absolute nonsense. There’s a world wide economic crash coming. We are already in recession, it just not publicly admitted yet. We’re about to go into a depression that will make the last one look tame. This is not the time to be buying and getting into debt for anything. Get rid of all your debts people.
Maybe 2023 will be the time to buy. I am saving for a house in Auckland. At the moment, scrappers are still asking for 1 million. Hoping for a 40 % correction. Anything less will still be out of reach for the average kiwi
![First Home Buyer Tips Australia [Buying a house in 2024]](http://i.ytimg.com/vi/qpoNkSD2O10/mqdefault.jpg)
![First Home Buyer Tips Australia [Buying a house in 2024]](/img/tr.png)
On the New vs Established topic, as an investment property (not owner occupier):
That's all well and good to say the building depreciates and the land appreciates, which is obviously the case. However, when it comes time to sell the (what was a) brand new property, if you decide to do so, the "depreciation" of the house really isn't considered by the market/purchaser. If what I was saying was incorrect, you would see 20 year old properties that are severely discounted when compared to new properties are also being built in the area, but you don't. In fact, you generally see that house+land packages are generally cheaper than to buy established (not always the case, though).
Furthermore, not having access to that extended amount of depreciation in an established property may actually harm you, because the depreciation of the house allows you to claim against your taxable income. Without that, you can only claim your much smaller expenses.
As an investor, brand new properties generally command higher rents, have less maintenance, you can depreciate more against your taxable income, are cheaper to build than to purchase an established property, and you pay much less stamp duty (only on land). Obviously this comes with the pre-condition that you buy correctly, in a good location, with good economic/growth factors, etc. But, providing you do that, brand new property is a much better investment for investors who are buying their first or second investment property.
Happy to be challenged on this, but I can't see how Jeremy could make that claim.
Thanks for sharing David!
Talking about a house being a liability and the land being an asset - how would this rule affect a heritage listed home? Circa 1900-1930 etc.
Sounds great, depends if your buying a home to Live in or as an investment. Doesn’t take a genius to work out anyone can live in a shit hole that can have growth for land value, I’ll take quality of life living in a beautiful home thanks, enjoy your shit box 💪🏼
Thanks for sharing Gazza
What do you think would happen if the cash rate gets to 5%? Mortgage rates up to about 7%? Obviously borrowing capacities would reduce so buyers like myself are going to have less budget to buy as prices are falling. Doesn’t really change what I can afford to buy.
Thanks Rob, that's right. For every 1% rate increase borrowing power reduces by roughly 10%
Hey I'm sorry not sure if I heard you cover depreciation report for investors. I have financial friends who say investors are better buying a newer house further out of town because you can claim higher depreciation for their tax rather then old house closer to town....
Another great video some excellent tips 👌
Great idea and appreciate the feedback!
This is absolutely the case and I agree with you. See my comment explaining in a little more detail, but still at a high level.
@@DBBBB awesome thank you!
Where are you buying a block of land for 200k? Average around me is 600-700k
You buy an established house but has a gas pipe running across your land. Does this effect the overall price of your property when it comes to sell.
Thanks John, that's a good question and might be wise to compare the property value of other similar properties that have the gas pipe compared with those that don't.
Great advice 👍
Thanks Shane, appreciate the feedback!
Trillions went in the money printing artificially spiking prices with sugar rush. Now the Fed who know may continue using interest rates taking the easy money out of the system. This by rights should have the opposite effect. But who are we to say? They won't let the free market correct.
Thanks for sharing Von
Question: I am about to go to the market for my first home, but was wondering with 100k deposit, can you purchase a multiple homes (one for living and the rest for investment) with one home loan? If yes, how can be done, knowing that purchasing investment property requires 20% deposit and purchasing a home to live in requires 5% to 20%? Can you please assist?
Thanks Peemun, each purchase would be set up separately. Effectively you'd be able to lend up to 95% on the home to live in and the investments up to 90%
Don’t do it, you will lose everything. Houses are way over inflated, when the crash comes & banks want their money, they will take your home & you will still owe them because your loan exceeds the value of the property. Next year is going to rock the economic world. Wait.
@@-xyz-012 Thanks bro, the world as we knew it is getting harder and more difficult. At our childhood, we never had all these issues. God helps us all.
Where is Sydney the dwelling is depreciated????? Everything is going up up up in prices
Thanks for sharing Frelda
Your content is getting better 👍
Thanks for the feedback, really appreciate it!
I wondering if it is advisable to wait until the RBA cash rate is close to 3%, another 1% to go which is closer to Dec 2022 or early 2023.
Thanks A F, that's a great quesiton and one that will only be known in hindsight.
Is townhouse and villa consider as an unit in this case? People always compare house and unit, not sure which category townhouse and villa belong to.
Thanks Loi, great question and a hard one to answer. Probably somewhere in the middle.
Townhouses aren't too bad, a little better than units, but they're kind of cut from the same cloth. From my perspective, it depends how you balance everything and what you're expecting from the property. You will have things like body corporate to deal with, which is a pain. At the end of the day, owning all the land is the best situation to be in, but if you're priced out of the market for a house and land package, a townhouse might be ok.
A better situation would be to buy the land and build a duplex. That way you own all the land, you can then either rent out the other side or sell it off, and knock a very large chunk off of your mortgage. Then there's also not too many chef's in the kitchen when it comes to "body corporate" type issues.
none of this makes sense since CORONA - market is way over valued. old buildings worth more than new because you can't build in a timely manner. hopefully it will correct once supply of land and building material ease.
Will be interesting to see how things pan out once supply chain issues and inflation cools off for sure, cheers for watching JPR. Thanks, Nathan
I am interested to know the Brand and Full Details of Jeremy Shepperd's Wireless Headset. It seems to be working perfectly for Long calls and Vlogs / Podcasts.
Thanks for watching!
It’s not wireless
Great content. Thanks guys.
Our pleasure!
so should I buy units or just wait until next year?
The video literally said to stay away from units
Thanks for watching Yoen
Hmmmm, not all correct, based on my experience investing in new developments like Providence Ripley have paid off a huge amount, we have almost double our money! Buying new also has less issues and maintainence with house, lasts much longer than an old house.
Some of what is stated is correct but hes stuck in the old school ways 🤣
Thanks for watching!
Agreed. See my comment, probably reiterates exactly what you think. It certainly does sound like older school thinking, which isn't really applicable in the economy we have today, as it's very different than the Gen X / Boomer economy.
In the last 2 houses I rented one was older in a good area but we paid less rent and the place upon further inspection was actually falling apart. The landlords felt we were being difficult tenants when we informed them of issues like a broken tap in the shower. Turns out that broken tap was leaking inside the wall and did massive damage to the wall and sunk a foundation.... They tried to blame us untill we pointed out the emails 9 months ago asking for it to be fixed. We weren't even pushy with a few reminders between and on inspections. The house after that was in a crappy suburb but was very new, based on sales data is was way cheaper for the landlord and we paid a much higher rent which we didn't even mind as it had way more space, wasn't dangerous, was way more efficient so our bills were way cheaper and we had way more room. We even paid them for minor damage that in an older house we would have argued against. The first house would have had to be negatively geared whereas the second could pheasibly be positively geared.
great interview, great advice
Thanks for watching
Jeremy Fulla.
Thanks for watching
*2023
Can't agree more Jeremy.
Thanks for watching
Absolute nonsense. There’s a world wide economic crash coming. We are already in recession, it just not publicly admitted yet. We’re about to go into a depression that will make the last one look tame. This is not the time to be buying and getting into debt for anything. Get rid of all your debts people.
Best time to not buying property in 2022 & 2023
Thanks for watching Bow!
Maybe 2023 will be the time to buy. I am saving for a house in Auckland. At the moment, scrappers are still asking for 1 million. Hoping for a 40 % correction. Anything less will still be out of reach for the average kiwi