EBS 3: New vs Old | The Nasty Truth About New Property

Episode 3 tests the new versus old theory and shows why depreciation is not a benefit but a cost that only reduces tax while the building falls in value and the land rises. Through clear examples comparing land to asset ratios, cash flow, vacancy, stamp duty and grants, we show the growth gap still favours established homes with more of the price in the land.

We confirm this with Queensland sales data where newer dwellings delivered lower capital growth, and explain how capital gains tax can claw back years of claimed depreciation.

The message is simple. If you want a new home, build it for yourself. If you want an investment, favour established property with strong land content, limited new supply and room to add value.

Episode Highlights:
00:00 - Introduction
00:53 - Nothing beneficial about depreciation
01:43 - What is depreciation
03:40 - Depreciation tax deductions
05:44 - Depreciation schedule example
10:39 - Depreciation — You don’t get it all back
13:37 - Depreciation — New vs Old
14:17 - Land vs Dwelling
14:51 - New vs Old
21:15 - Appreciation and depreciation
33:50 - First homeowners grant
35:29 - Land to asset ratio (LAR)
37:45 - Why pros shouldn’t recommend high-depreciation properties
41:57 - Renovate or rebuild
54:52 - Conclusion

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🎙️ Watch all Expert Busting episodes:
https://www.youtube.com/playlist?list=PLWD8h9iMOyGg14F66DTdoZuS63mUJwJ82

📚 Read the full data-backed articles:
https://suburbdata.com.au/education-expert-busting/

🔎 Learn how to use Suburb Data to analyse property data:
https://www.youtube.com/playlist?list=PLWD8h9iMOyGhDsFFEMdzP5fvfenYvbp0B

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Expert Busting Series
A data-driven investigation into property myths.
We fact-check bold claims, expose misleading advice, and reveal what the numbers actually say.
Evidence over confidence. Data over hype.

#expertbustingseries #propertymyths #australianproperty #propertyinvesting #datadriveninvesting #suburbdata #DSR #propertytruths #realestateinvesting

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DISCLAIMER
Please be aware that the content in this episode is for general informational purposes only and does not constitute financial advice.

• The information provided is not tailored to your individual circumstances.
• It is strongly recommended to consult with a qualified financial advisor before making any financial decisions based on this content.
• We do not hold an Australian Financial Services Licence as defined by section 9 of the Corporations Act 2001 (Cth) and are not authorised to provide financial services.
• Any actions taken by viewers based on this content are at their own risk.