I've been thinking a lot lately about whether it is better to: a) buy old properties with renovation/redevelopment potential but fairly low depreciation OR b) buy newish properties with high depreciation allowances but limited value add potential. Option A advantages are: 1) greater upside potential 2) chance to buy well where run down or vendor can't see potential 3) bringing the property up to "as new" gets a higher yield and builds "sweat equity" Option A disadvantages are: 1) until reno is done rental yield typically low/below market 2) reno/redevelopment is a hard cost which must be funded out of your cash/LOC 3) in a tough market you may not get the rental uplift and revaluation you had hoped 4) you may overcapitalise 5) there is risk in developing (and I suppose renos too) if you don't know what you're doing/lack experience or don't know what you don't know 6) it takes time for you to either do the work yourself or project manage it. If you don't do either of those things you have to pay someone to do it for you or you end up paying way too much 7) delay from councils! Option B advantages: 1) easier/safer option 2) quicker 3) higher starting yield 4) nothing to spend up front by way of reno costs 5) depreciation is something for nothing i.e. no cash outlay for a deduction (at least if you don't intend selling) 6) younger property should equal lower repairs and maintenance 7) possibly lower vacancy due to "newness" Option B disadvantages: 1) no extra upside apart from usual property growth 2) may not be in as good a suburb (altho I think you'd try to target the same suburbs as for older property) 3) less price flexibility - at least I think people would be less inclined to negotiate 4) boring 5) slower? due to no equity kicker unless you can buy really well. Essentially just relying on the market to do its thing over time I've always bought older places and renovated. But I'm wondering if a change in strategy may be in order due to ever increasing demands on my time. Anyone able to add to the debate? Cheers N.