Build new or renovate?

[Csabor69]

Hi
We are first time buyers with some money to spend on an investment property to live in for a year then sell.
Considering an option to buy land and build new or renovating an older property. I have read there is a grant for new buyers which is a bonus.
An open question is which option would you recommend guys?

 

[knightm]

Hi
We are first time buyers with some money to spend on an investment property to live in for a year then sell.
Considering an option to buy land and build new or renovating an older property. I have read there is a grant for new buyers which is a bonus.
An open question is which option would you recommend guys?

Welcome to the forum!

Buying a property to live in for a year and then sell would not normally be considered an investment. It would be a principal place of residence (ppor). Most buy their poor based on emotion not investment principles.

The concession applies to stamp duty to stimulate building. Could be equivalent to around 5k on a 200k land purchase.

In my view this is nowhere near enough to make an investment decision. If thinking about investment you should buy based on:
1 You long term goals
2 Your short and medium term goals
3 Your cash-flow needs
4 Your equity position

You need to think about both your own accommodation needs and your long term portfolio needs. Work backwards from there.

Generally, if I was in your shoes and contemplating something like a buy, live for 1 yr, sell and hoping to make any money, I would buy 2nd hand property. 9 times out of ten this will be less risky than a new build for someone who is totally lacking in building/developing experience. Even when buying 2nd hand, you still need to try and remove the emotion and buy based on the numbers if you hope to make a capital gain in a short time period.

Keep reading the forum is a great place to learn!