When you buy an investment property, you will often run into the dilemma of choosing between an old and a new one. Each type of property has its own set of pros and cons, so it's best to weigh your options before you make a choice. Here's how you benefit from each type of property:
The general rule when it comes to buying old properties is that you should pick one that needs only minor work. This will save you a lot of money compared to doing a complete renovation. However, there's an even bigger advantage to getting a property in a fair condition. You could quickly renovate it while significantly increasing its value in the process. In other words, there's a potential for you to make a good profit when you fix up an old property.
Old homes also have an appeal that newer properties don't have. This includes the location, the look, and history of the home. And because there's a huge market for this type of property, chances are that you'll have an easy sell on your hands.
Now that we've covered the advantage of old properties, let's move on to the other side.
Buying a fresh and new property is like buying a new car: it is generally free of all the headaches that come with older models. There's nothing to fix, and it comes with statutory home warranty insurance from the builder. What it does is protect the buyer from building defects for a set number of years. Should the new owner find defects within that period, he can make a claim against the insurance to have them fixed.
Tax benefits also make new properties attractive. Depending on what's included in the property, you could claim depreciation on the appliances and other items there. The general rule is that the newer the add-ons, the higher the rate of depreciation you could claim.
By showing you the advantages of each type of property, we hope we made making your choice a lot easier. But whatever type of property you pick, you'll need a home loan to get what you want. Here at Rate Detective, we'll help you find the right loan for you. Our professional advisors will even show you a rate comparison of Australia's top lenders, thus giving you the power of choice unlike anywhere else.