Choosing new over old
23 February 2016
The residential property market in Canberra has never been more competitive than it is right now.
There are a host of new developments as well as established homes going under the hammer. So, as a property investor, how do you decide which is right for you?
Many of Canberra’s established homes are of significant age, and they have all the baggage that goes with it. As a property investor, the last thing you want to have to deal with are surprises such as rental vacancies, special strata levies, maintenance issues, or how you’ll have to manage a minor or full renovation in order to realize the full rental potential of your investment property.
A new property will last you through a full property cycle of 15 years or more. Provided you chose a property by a builder with a good track record, there will be virtually no maintenance issues in the first 10 years, and only minor ones in the next five.
Established properties are perfect for people who have time to spare and enjoy managing the maintenance required for an older property — and don’t mind getting their hands dirty.
What’s more, while you may pay more for a brand new property off the plan, you can recoup a lot of that premium through depreciation. This could be as much as $16,000 in the first year. If you’re in the top tax bracket, that’s nearly $8,000 back from the tax man, and all with minimal headache, fuss and uncertainty.
The price of buying new is a fair price to pay for the peace of mind and for a superior, more bankable investment property.