When people decide to invest their money in property investment, there are many choices that somebody can make, such as choosing to buy an apartment, a mini-mansion, or a house, but this time, we will review specifically about buying a house. As if you decide to buy a house, you will face two options – whether to buy new or old.
Both of them have their own advantages, and real estate agent Luke Woollard from Thepilots.com.au says that there are advantages and disadvantages of both types of investment. He points out that there’s no definitive “right or wrong answer”, as it ultimately depends on each investor’s own strategy and goals. This means, that either an old or new house can be a good kind of investment, since having a house is a good long-term strategy to secure your retirement. What you’re not sure on is whether you should buy brand new house, or whether you should look at existing houses, so maybe by knowing the advantages of old or new , it may help you decide. Here are some advantages for your considerations.
Advantages in buying an old house.
- Opportunity to negotiate on the purchase price
- Opportunity to value add to the property by renovating or refurbishing
- Opportunity to pick up a bargain
- Stronger performers in slower markets
- Established historical sales data
- You pay a premium for new properties.
Advantages in buying a new house.
- Quality construction
- Modern design with better energy efficiency and sustainability features
- Attract quality tenants willing to pay a premium
- Lower vacancy rates
- Lower maintenance costs.
- Higher claimable depreciation value
- Generally a better resale value
- Structural guarantees and warranties apply.
As conclusion, both, old or new houses have their advantages, so do your research, decide what is important to you, and stick with that decision when making a decision.