Brand new homes deliver benefits from depreciation to capital growth potential but older homes have the capital growth history to back them up.
So which is the better investment?
Here are some Pros and Cons from RealRenta to help you make your own mind up:
· No limit to location, you can buy established
homes generally sell for less than brand new
and you may be able to buy under market value
manufacture growth through improvements & additions
defects and structural problems can be very costly and can cause huge problems
down the track.
can be very costly and blow out of proportion to your original budget and then
there is the issue of council approval.
on existing properties is lower than new properties and this can impact cash
The Plan Pros:
is at a maximum for brand new properties
properties have all the high tech gadgets that appeal to the younger
properties need less maintenance and repair and often are still covered by the
for off the plan properties can be considerably lower than other properties.
The Plan Cons:
estates and subdivisions are generally not close to city centres
of these locations mean that they appeal to young families who are interest
areas tend to have lower capital growth
there is GST, developers profit margin and marketing costs
of new homes can be lower ( the motivation for profit means substandard
materials and labour etc)
rental agreements terminate, the yield may no longer work in your favour
plan properties typically attract a premium price
market takes a downturn during construction, off the plan properties may be
worth less than what you paid for.
need to lower your rent in a new development, if there is a large volume of
properties that come onto the market at the same time.
Need a property loan?
Contact us @ email@example.com and we will arrange for our trusted
broker, Jon, to contact you soon.
Saturday, 17 August 2019