New jeans. New shoes. Brand-new crisp sheets. There’s no better feeling than something brand new. And the same can certainly be said of real estate.
While some homebuyers and investors will prefer established properties, there are some very good reasons to consider a new property.
So, what are the key advantages of buying new?
1. No maintenance
One of the biggest benefits of new property is that it generally requires little maintenance.
Low maintenance means not only less headaches but also less pressure on your hip pocket. Leaky pipes, rattling windows or a roof that needs replacing can easily leave your finances strained. Moreover, if you’re already stretching yourself thin, a sudden maintenance issue can leave you high and dry.
Of course, some new properties can have teething problems, but generally speaking, they are much less likely to need as much spent on them as those that are well into their 20s or 30s.
2. New design
Contemporary building standards usually result in a property that has a warm, welcoming orientation with more cost-effective running. New properties usually come with warranties of several years so you can feel safe in the knowledge that the first few years spent in your property should most likely be free of major expenses.
3. Rental royalties
If you’re contemplating an investment property, then a new property can be a good choice.
Certainly, that ‘brand-new feeling’ is a big drawcard for potential tenants, as are contemporary design and appliances, including heating, cooling, dishwashers and built-ins.
In fact, a new property will almost always deliver better rental income than an older one, which can go a long way towards managing investment costs.
And with a new property increasing your chances of attracting a larger pool of tenants and achieving a higher rental price, you’ll be much less likely to end up with a problem renter, every investor’s nightmare.
4. Tax benefits
Lastly, let’s not forget there are significant taxation benefits associated with new property which make it particularly attractive to investors. Tax depreciation benefits are at their greatest when a property is brand new, and investors’ tax deductions can mean a significant boost to cash flow.