Should You Buy A New Vs Old Investment Property?
New Vs Old Investment Property – Research Which One You Should Buy
For many Australians, buying an investment property is one of the most important financial decisions they’ll ever make. To make sure their choice is the right one, homebuyers need access to meaningful information about properties, suburbs and prices. Investment property research is crucial.
Engaging with a real estate professional is a great first step when you’re getting started with your investment property search. After all, we know an area inside and out, and will be across trending suburbs, prices and new developments. Our role is to pre-empt the questions that people looking to make their next investment may have. We can easily answer questions like:
- Do I go for a new or older property?
- Which suburbs have the best schools and bus lines?
- Are there any new subdivisions coming up for this location?
Our job as real estate professionals is to help people discover and purchase properties that have all the attributes that matter most to them.
Identifying What You Want
While all properties share common features, the make-up of those features is what makes each property unique. If you’re buying an investment property, it’s still worthwhile considering what your own needs and tastes are.
Things to think about include:
- Property type (unit or house)
- Land size
- Building area
- Number of bedrooms
- Number of bathrooms
- Number of car spaces
- Year built
- Proximity to services like shops, schools, public transport
- Future developments in the street or area
The Pros and Cons of a New Vs Old Investment Property
There’s a lot to consider when choosing between a new dwelling versus an older style investment property. No two properties are exactly alike – just as no two buyers are same.
When reviewing what’s important to you, it’s a good idea to list out what best fits your needs. The following checklist covers major points of comparison when making your decision.
- Brand new construction with warranty periods
- Customisable floor plans
- The cost of upgraded features and appliances can be added to the mortgage
- Better energy-efficient rating
- Fewer maintenance costs associated with repairs or renovations
- Often cheaper than established
- Location may not be ideal (lack of schools and shopping opportunities, possible longer commute)
- Lacking in character – cookie-cutter design
- Lack of growth in landscapes
- Property values are untested and may change with significant growth in the area
- Ongoing construction in the area for a long time
- More desirable locations
- Proximity to schools, shopping, and public transport
- Tend to have more character
- Established community
- Property values can be determined before purchase
- Typically more expensive
- Known financial history
- Neighbourhoods are more tightly held so less availability
- More off-market sales (in today’s climate)
- May require repairs and/or renovations
- Lower energy efficiency
- Greater competition from competing buyers
- Higher prices depending on location
For some people, new construction fits their needs perfectly and will be the logical choice. For others, an existing home will tick all the boxes and will be the right decision for their financial goals. But whatever the final decision, it is important to fully consider the advantages, as well as the disadvantages, of buying either a new or established investment property.
Ultimately, buying any property is a major financial commitment. It’s an investment in your future. Remember, when all is said and done, you should not only be comfortable with price but also with how your purchase will support your financial goals into the future.
The property future is looking bright
According to CoreLogic, the future of the Australian housing market remains positive…
“Overall, housing trends around Australia remain positive. Growth in housing values is being supported by an expectation that mortgage rates will remain at record lows for an extended period of time…”
~ Corelogic [1 October 2021]
From growing your income to planning for your retirement, there are plenty of reasons why investing in property can be a worthwhile strategy. Whether you’re looking to buy your first investment property, or you’ve got a large portfolio already, we’re here to help you on your journey.
The Southeast Queensland property market is seriously hot right now. We’d love to help you get in on the action now.
Have questions about your investment property research? Image Realty can help.
Please note: At Image Realty, we make every effort to provide accurate and up-to-date information. However, our material is for reference only – it is not designed to be, nor should it be regarded, as professional financial advice. We encourage you to seek advice from a qualified accountant or financial advisor before making a decision.