BRAND NEW VS. ESTABLISHED PROPERTIES - WHICH IS BETTER?
Choosing between a Brand-New Property or an Old Established Property is one of the most asked questions.
Building wealth through property investment is a rewarding journey that requires patience and strategic planning. Holding onto a property for at least one full market cycle, ๐๐๐ฝ๐ถ๐ฐ๐ฎ๐น๐น๐ ๐ณ ๐๐ผ ๐ญ๐ฌ ๐๐ฒ๐ฎ๐ฟ๐ is essential for investment success. Hence, it is important to invest in a property that is easier to hold on to.
Investing in Brand New Properties offers significant advantages, including:
Lower maintenance costs
Higher rental yields
Depreciation benefits
This leads to the following:
Favourable cash flow
Increased investment profitability
However, potential challenges such as higher initial costs and construction delays could affect your investment timeline.
The appeal of Established Properties includes the potential for quick settlement, often within 30-60 days, and possibly a lower entry price compared to similarly sized new properties.
However, older properties tend to have:
Higher ongoing maintenance costs
Reduced depreciation benefits
Usually, lower rental yields
which can present cash flow challenges and often encourage investors to sell their property without even holding for one cycle.
It is important to make choices aligned with your risk profile, income, savings or equity, long-term goals and borrowing capacity.
At SONI, we take time to understand our clientโs needs, aspirations, and challenges. We help them create a personalised property investment strategy tailored to their circumstances, enabling them to build wealth securely.
Whether you are looking to purchase your first home or investment property book your no-obligation consultation today!