There’s a lot of debate on the benefits of new versus old investment property, but there is no one size fits all answer. Factors such as your financial position, available time and renovation skills all influence what sort of property is most suitable for you. Below we discuss the pros and cons of each, as well as suggest who each option is best suited to.
New property is highly desirable by tenants, but you pay for it. New houses can be up to 25% more expensive in some areas, so you need to weigh up whether it’s worth it.
Whether it’s a renovators delight, a cheap red brick walk-up or a quaint little cottage somewhere, older properties have charm and can be great value for money for the right buyers.
So which one is right for you?
There isn’t a straight answer that works for everyone. As a general rule, if you’re handy and have the time, adding value to an older property can work well for you. Just be very careful with the purchase price as competition is high. However if you’re time poor and want a more secure, stable investment that’s hands off, consider buying new. It will be easier to rent at higher levels, you don’t have to put a lot of time and effort into it, and the tax advantages are also handy.