New vs. Old for an investment property

When deciding between a new home and an old home for investment purposes, there are pros and cons to each. Here’s how they compare, and we are happy to discuss these with you at any time. 

New Home Investment Benefits 

+ Higher Depreciation Benefits

New homes offer better tax deductions through depreciation, especially on fixtures, fittings, and construction costs. 

+ Lower Maintenance Costs

Everything is new, so there are fewer unexpected repairs, reducing out-of-pocket expenses. 

+ Attracts Tenants More Easily

Modern designs, energy-efficient features, and better amenities appeal to renters. 

+ Better Energy Efficiency

Lower running costs for tenants can make the property more attractive. 

+ Builder Warranties

Structural and appliance warranties help protect against defects and initial repair costs. 

Potential Downsides 

– Higher Purchase Price

You often pay a premium for a brand-new property. 

– Limited Value-Add Potential

Since it’s new, there’s less opportunity to increase value through renovations or improvements. 

– Higher Holding Costs in Estates

If buying in a new estate, land appreciation may be slower due to high supply.