在澳大利亚 I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo
I am thinking of buying a 40 year old unit.
Please share with me what would be the pro and con in regards to tax and legal implications long term.
There are no legal implications to buying a 40 yr old unit - apart from any of the legal implications from any purchase you may make.
The only tax inplications will be that you may have to pay land tax at some point if you own other property and this new purchase tips you over the land tax free threshold.
Income tax inplications are that you will likely have little (if any) depreciation to claim.
Thanks Propertunity for immediate respond
Our son just bought a unit built in the 70s. If ever there is an earthquake, he should be right. It is solid as a rock. Often these units are very solidly built and have larger living areas than some new units.
have a few myself - no issue as long as the strata report (body corporate report) has no issues. Your solicitor should order, and you read this, and that is to your satisfaction as a condition of settlement
lizzie said: ↑
have a few myself - no issue as long as the strata report (body corporate report) has no issues. Your solicitor should order, and you read this, and that is to your satisfaction as a condition of settlementClick to expand...Hi Lizzie, I'm considering a unit ip soon. Regarding "no issue" and "satisfaction" what should I be looking for?
That the building is well maintained - that the sinking fund and admin fund has sufficient funds for near future planned works (which will be outlined in the strata report) - that there are no issues with occupiers - that sort of thing.
Basically that they have sufficient money and no dramas.
And there's no plans for a $20k per unit special levy to fix concrete cancer in the building! (also read the minutes from the last body corporate meeting)
I'd have thought that with units risk is more to do with the size / height of the building than its age.
Eg a solidly built 40 yo unit in a small block of single storey villas should be fine provided there's no issues with foundations, underpinning or cracking walls.
In relation to tax implications, you won't be able to claim building depreciation, unlike a dwelling 20 years old. If rental yield and costs are the same the younger unit may have better cashflow. But if the 40 yo building is cheaper, has more land component and is better located than the newer unit, it may still be a better buy.