New Build Or Established Home – What Makes For A Better Investment?
Incorporating property investment into your wealth strategy is a popular move for many Australians. So, when it comes to purchasing an investment property – is it better to buy an established home, or build a new one? While both options have their benefits, there are a couple of reasons why a brand-new build makes the most sense for your next investment.
Choose Your Location
Investing in a brand-new build means that you can plan the home from the ground up – literally! Being able to utilise statistics, reports and other data will help you predict the best place to look for land so that it has the best chance at achieving growth over time in a wonderful up-and-coming area. There is a swelling interest in Melbourne’s northern and western suburbs and for good reason. Great schools, beautiful parklands, wonderful new infrastructure and amenities and a close-knit community spirit, making it a sought after region for potential tenants. The people looking to rent in these locations could be your ideal tenants — families who want a high quality of life for themselves and will truly care for your investment.
New Appliances and Warranties
Electing to build your investment property with a reputable building company will ensure that all building works will not only meet but often exceed the standards set by regulatory bodies. This will allow complete peace of mind for both you and your potential tenants. Your builder’s warranty will cover faults of various aspects of the property for an agreed period of time. What’s more, your future tenants will relish in the fact that their home features new appliances have never been used before! The hot-water system won’t time out, the taps won’t leak, the windows will open and close with ease — everything is brand-spanking-new. No middle-of-the-night emergencies in sight!
You may be familiar with the saying, ‘when you buy an older home, you buy someone else’s problems!’ This isn’t exactly a desirable quality in an investment property. Unlike a new-build, an older property will require regular upgrades and repairs due to wear and tear over time. Not only could this directly impact your potential return on investment as the repair bills eat away the rent collected, but if a major renovation is required, this could mean that you risk losing regular rental income during the works.
Attract Great Tenants
New-builds are generally perceived to be higher quality than older homes, which means you’re bound to have greater tenant appeal if the home ticks all the right boxes and is in a great location. Setting the home up with low maintenance gardens will also appeal to busy tenants. High quality property photos will also help you attract high quality tenants resulting in reduced risk of vacant periods, and the opportunity to charge premium rents for a premium experience.
In marketing the property, being able to utilise contemporary features such as stone benches and brand new appliances put you in good stead way when competing with older homes, and often older homes don’t have ducted heating and cooling – a must for those with young families – standard features when you build with Aston Homes.
The Aston Homes team are happy to assist with information regarding your next investment. If you’re considering one of our floorplans for your new build, feel free to reach out with any questions you might have. Contact us here!