Q&A: Which property strategy?

Which of the following strategies seems like the best for someone entering retirement; 1. Buy one 4BR new townhouse 500K 2. Buy one 2 BR new townhouse 320K 3. Buy two 2 BR 25y/o flats 450K I’m assuming for retirement that no mortgage is best?? — Rick

Dear Rick
I would buy the two x 2 brm units as 25 years is not a great age for property. Remember new properties carry a 15% GST component in  them which makes any capital growth that much harder to get.
In general the rent from a tidy but older unit is not proportionally less as compared to a new unit so you would get a little more rent for the same outlay.
No mortgage in retirement is best of course, but a property with a manageable mortgage is no bad thing in any event.
Regards
Olly

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