New properties
don’t cost that much more than established properties.
There do seem to be some affordable deals available for new properties,
but as always it is crucial that you do your homework first, and be sure to ask
a couple of hard questions.
First of all, what are you actually paying for?
When you buy directly from a developer you are inadvertently paying for
the developer’s margin, the agent’s commission, and the cost of marketing –
combined, these figures amount to tens of thousands of dollars.
In real terms, this means you’re actually squandering your first few
years of capital growth and even instantly losing value.
If you’re not holding for the long term, you can say goodbye to a
favorable resale value – especially in a slow market.
Most of the numbers that you see floating around for new(and particularly off the plan)
properties are projections – educated guesses, in what is usually an
overcrowded market. Secondly, how can you actually determine fair market value?
When you buy an established property you can access historical data and
market research, which paints a much clearer and more insightful picture of
what you’re actually buying.
RealRenta has all the tools that a property manager has, but at over ¼
the cost of a property manager.
Join now and the
cost is less than a cup of coffee a week to manage your rental property
RealRenta also has a
free vision, so why not check it out
Jason Gwerder
Wednesday, 16 June 2021
