Old vs new property – which is a better investment?
We’re often asked by investors whether they should be buying a new or old property, and which is the better investment. So lets take a look at the pros and cons of each.
- tend to have better layouts, so more efficient use of space
- should have less maintenance issues
- when buying off plan its possible to customise the look of the property
- often better quality materials and construction. should be better insulated (lower heating bills)
- often easier to buy a large number of units offplan rather than trying to source each unit individually on the secondary market
- often has a higher purchase price
- higher service charges (for apartments in new buildings)
- less facilities in the area if built on a green or brown field site until the area gets more established
- higher chance there will be further new construction in the area (leading to higher supply of properties and worse view/noise etc)
- if poor quality may suffer from thin walls
- often the best purchase price
- often has more character than can attract certain tenants
- often more established facilities and transport connections in the area
- thicker walls for better sound insulation
- higher and more uncertain maintenance costs
- may need to be reconstructed
- higher ceilings and more drafts (can be higher heating bills)
- may not have a lift in the building
- more likely to have older electricity and plumbing systems
- may need permits/permissions in order to make changes to the property
- may have less outside space than a new build development
Overall, it really depends what you are looking for and your investment strategy as to which is best. Please contact us for more detailed advice on the best kinds of properties based on location and market cycle.