I was recently asked if it is better to invest in established or new property when considering an investment strategy. There are advantages and disadvantages with both options and you should think carefully about what type of property is best for your investment based on various property investment strategies.
If you buy established, you get an income immediately, but the house may not be an ideal investment and you could miss out on the full investment property depreciation benefits.
If you build or buy new – you can build exactly what you want, where you want it, plus claim the full investment property depreciation benefits. The problem with these property investment strategies is that if you decide to build and partner with a builder who is not experienced with investment properties, it could take you extra time. You might need to modify one of their existing home designs or start from scratch, and you might not take possession of your investment property for up to 18 months or more, extending the length of your investment strategy.
Choosing a builder who is experienced with building investment properties has many advantages for your investment strategy. They should have a range of specific home designs ready to choose from and once you have your block secured, your tenants could be moving into your new investment property in as little as 12 months from the date you sign up for the house.
Investor Assist has a selection of home designs and packages, ideal for investors, which have been hand-picked as ideal investment opportunities in locations with strong growth potential, and they are fully complete, or “turnkey”, which means your tenants can move in as soon as settlement goes through. With this option you can benefit from the full investment property depreciation benefits, plus you get an immediate return.
There are pros and cons to buying new or established property investments but whatever option you decide, make sure the property is designed with your investment strategy for your investors and tenants in mind. It should be located in a suburb with strong potential for growth, plus it should be well-designed and constructed from low maintenance materials, regardless of the property investment strategies you choose to adopt.
If you would like some help figuring out what type of property is best for investment, our team of Property Investment Specialists are happy to help.
If you have a question, I'd love to hear from you at AskPeter@investorassist.com.au
Want to know more? Contact our team of Property Investment Specialists today.