It is an age old question in the investment area, which is the better way to go, existing property or new build, when wanting an investment home? There are many factors that need to be taken into consideration when investigating your options and the investment property market is fraught with danger for the uninformed.
The good news is that the dedicated team at SC Tax Depreciations have the experience and knowledge to guide you through the minefield that is investing. With a finger on the pulse of current legislation and a solid track record in Quantity Surveying and also an understanding of construction costing skills, our team are more than qualified to help you.
The most expensive item you will purchase in your life will be property. Some people think that shiny and new is the best way to go, but is it?
Here are some of our thoughts to ponder in relation to old vs new that may help you, before you meet with us, to make an informed decision:
- When you purchase new you don’t just pay for the building, you also pay ‘extra’s’ that cover the developer’s margin and costs for their advertising. Bottom line is you really pay for your new investment. Generally this means that it will be sometimes quite a while before you start to see any returns on your investment.
This scenario can be reversed when you purchase an existing property, if you have the opportunity to buy into the market at the right price, either at or below the property’s current market valuation. When you are able to purchase at the ‘right’ price you can expect to see immediate capital growth in most cases. If you are able to purchase the worst property in the best street, as the saying goes, you may benefit by paying well under the value of other homes in the same area. A little TLC needing to be done can be a benefit and you have purchased a property with ‘potential’
- When you purchase a new home, all the work is already done for you. There is no delay to put tenants in the property as it is ready for someone to move right in. In some instances the developer even guarantees rental returns for anything up to a year or more. While this might seem appealing, the downside is that you don’t have the ability to see added value or gain capital growth like you would with an established home or unit. While it is wise to have building inspections and other checks to ensure that you avoid anything that needs costly, structural repair, something a bit dated and that needs bringing into the 21st century provides the perfect opportunity to obtain immediate capital growth and outperform the averages.
- It can also be an easier task to negotiate pricing on an established property than you would with a new build.
It does however all come down to your personal goals. With an established property it is 100% up to you to ensure that it is up to standard for tenants to reside. Generally on-going maintenance costs could be high and the property does not have any tenancy guarantees. When you buy new, new builds have warranties and guarantees on them.
Choices, choices! So, when you are ready to make this choice, come and see the experts at SC Tax Depreciations Gold Coast, and we can let you know the best direction for you today, leaving you to do the important things in life – ENJOY IT!