Old v New What’s going to fit your plan?

There a number of distinct advantages in new property and older property. 

But....before we dive into this weeks show lets cut straight to the chase, investing in property has one clear our aim,

"to build as much wealth as possible, with the least possible risk, in the smallest amount of time".

You need to be clear on whether new or old properties are going to help you achieve your investment goals.

Reduced Maintenance costs:

The simple fact that a building is new means that the building and it’s fixtures and fittings are less likely to require maintenance.

Lower vacancy rates:

The desirability of living in a lovely brand spanking new building, it is not often (definitely more so in the last three years) that a new building will have any vacancy after a month of construction being completed.

Higher tax deductions:

The Australian Tax system acknowledges that when you buy a new building, the building itself and all its fixtures and fittings will be loose value as they age. This depreciation is a business offset.

Older properties also have some advantages

Lower price

Due to age, you will be able to purchase an older property for comparatively less than a new property.

Yields

are slightly higher for older properties than new properties.

(this is not necessarily the case once tax deductions are accounted for with a new property)