When you purchase a house and land package, you can depreciate the construction cost at the rate of 2.5 % over 40 years. Brand new houses are easier to rent than older homes, and the building, fixtures and fittings require less maintenance. Newer buildings have a higher component of depreciable factors, which provide significant tax deductions and lead to lower holding costs over the long term. At RPA we recommend purchasing new homes, and our affiliates currently have low maintenance new homes for investors to purchase in Australian suburbs that will yield a high return.