With interest rates at new record lows, including for those with investment loans, and the restrictions on lending for investment having been eased in recent months, many Victorians who may have put their plans on hold in recent years may now be once again considering becoming a property investor.
Whilst our team is not in the business of offering investment advice per se, we are often called upon to help our clients find and secure a suitable property for investment purposes. For example, one topic that we get asked about is the age-old question of whether to buy new or buy an established property.
The fact is that the answer to this question will depend on your individual investment plan and goals, but if you are considering becoming a property investor you might be interested in some of the “pros and cons” that come into this equation.
Arguments for buying a new property include:
- Potential stamp duty savings by buying “off the plan”;
- Brand new properties often attract premium rent;
- Tax advantages such as depreciation can be maximised by buying brand new;
- If you build the property, you can tailor the floorplan to suit the rental market; and
- Maintenance costs are usually lower on a new home, particularly in the first few years.
In contrast, the arguments for buying established property include:
- You avoid paying a premium for buying brand new;
- Buying in the established market can mean more flexibility on price;
- You avoid the uncertainties of buying “off the plan”;
- Buying an established home may give you more scope for future renovations;
- There are no delays waiting for completion, so cash flow can be easier to plan;
- You have more flexibility in choosing the location of your investment;
- In some cases, you can buy with tenants already in place.
Clearly, there are arguments for both options. In our experience, property can be an outstanding way to secure your financial future, if you do it the right way. So if you need help finding an investment property, whether it’s residential, commercial, industrial or another special interest category, it’s worth talking to one of our experienced Buyer Advocates who can steer you through the process and help you achieve a tremendous saving in both time and money.
Our thorough research, specialist market knowledge and experience in every category of real estate can give you a real edge, to ensure you not only finish ahead of other buyers, but also ahead of the market itself!
Remember, if you are considering becoming a property investor, you can call the Customer Service team on 9430 0000 or visit THE IAN REID BUYER ADVOCATES WEBSITE.