BRAND NEW VS. ESTABLISHED PROPERTIES - WHICH IS BETTER?

Choosing between a Brand-New Property or an Old Established Property is one of the most asked questions. 

Building wealth through property investment is a rewarding journey that requires patience and strategic planning. Holding onto a property for at least one full market cycle, 𝘁𝘆𝗽𝗶𝗰𝗮𝗹𝗹𝘆 𝟳 𝘁𝗼 𝟭𝟬 𝘆𝗲𝗮𝗿𝘀 is essential for investment success. Hence, it is important to invest in a property that is easier to hold on to.  

Investing in Brand New Properties offers significant advantages, including: 

• Lower maintenance costs 

• Higher rental yields 

• Depreciation benefits 

This leads to the following: 

• Favourable cash flow 

• Increased investment profitability 

However, potential challenges such as higher initial costs and construction delays could affect your investment timeline. 

The appeal of Established Properties includes the potential for quick settlement, often within 30-60 days, and possibly a lower entry price compared to similarly sized new properties.  

However, older properties tend to have: 

• Higher ongoing maintenance costs 

• Reduced depreciation benefits 

• Usually, lower rental yields 

which can present cash flow challenges and often encourage investors to sell their property without even holding for one cycle.   

It is important to make choices aligned with your risk profile, income, savings or equity, long-term goals and borrowing capacity.  

At SONI, we take time to understand our client’s needs, aspirations, and challenges. We help them create a personalised property investment strategy tailored to their circumstances, enabling them to build wealth securely.   

Whether you are looking to purchase your first home or investment property book your no-obligation consultation today!