The Pros and Cons of Buying a Second-hand Investment Property
Planning to buy a property is always a brain-storming task. It doesn’t only involve financial planning but many other factors too. The location, neighbourhood, facilities nearby, price, property-size, architecture, etc. are such factors. However, buying a second-hand property is tricky, if the property is only for investment purposes. For a novice or a new buyer, the task could be messy and worthless. So, if you are about to buy a second-hand investment property, Deppro review is the need of the moment.
While planning for an investment property, a buyer must have many questions and queries in mind. Moreover, as an investor, portfolio appreciation is the main factor whether the property is new or second-hand. The economic health of the area, government policies, loan-facilities are some deciding factors for a profitable investment in second-hand property.
To ease your mind and make the decision easy, Deppro comes with the pros and cons of buying second-hand property for investment purposes.
The cons of buying a second-hand investment property
- Lower Depreciation Deduction:
In Australia, some legal changes on Division 43 (Capital Works) and Division 40 (Plant and Equipment Asset) are now affecting the depreciation deduction on the property purchased after May 2017. It’s better to check the house depreciation report before buying a second-hand property for any purpose.
In a nutshell, the second-hand property (plant and equipment asset) is intangible for depreciation. Also, the capital works deductions are not available for buildings built after 15 September 1987. In a layman’s language, one might get the lower depreciation deduction on the second-hand property compared to first-hand property.
- The Higher Cost of Repairs and Maintenance:
It is obvious older the property higher is the repair and the maintenance cost. While keeping the quote in mind, buying a second-hand property needs some pre-research. The foremost is the safeguard of the property against wear and tear. Then, comprehensive building inspection, updated condition reports, and past-renovations also matter.
In Australia, you can contact Deppro for a detailed building inspection and accurate maintenance cost.
- Probable lower rent:
It is quite usual for a tenant to look for a new property. Second-hand properties have their prerequisites that are hard to ignore. Because of low demand, the second-hand properties have lower rental rent.
But rent also depends on various other factors. A second-hand property in a premium locality can fetch even great rent than a new property in a shabby area.
The pros of buying a second-hand investment property
- Cheap Buy:
Buying a second-hand property has benefits as well. It is cheaper than a new property. The buyer need not run for the amenities. Sometimes, such a buy is necessary for a diversified portfolio.
- Availability of Basic Resources:
A new property needs every resource from scratch, whether it is an electricity connection or a Wi-Fi setting, water connectivity, or basic interiors. Now, the perk of buying a used property is, it has already these facilities.
So, for a concentrated-investment strategy, such properties are good in terms of budget and cost reduction. In Australia, a buyer can anytime dial the Deppro contact number for genuine advice.
- Easy to renovate:
A new property already comes with many modern amenities. It’s a costly affair to renovate it according to the buyer’s choice again. But an old property has options to renovate and convert it into a dream project without thinking much of the cost.
Also, a little investment in second-hand property can return the high profit in the future even, after depreciation deduction.
Deppro helps in depreciation deduction and tax on every type of properties
Deppro offers the most genuine bits of advice and helps for depreciation for tax purposes. One can order a tax depreciation report anytime online or ask for a professional.
Deppro tax report is always accurate and seamless. The experts here can help you in new and second-hand both types of properties at your convenience.
