Hi all,
The new versus established debate is a common subject here, given it is often particularly attractive to new investors (who do not wish to buy old and renovate).
Many experienced investors are often critical of buying H&L given the risks of paying a premium (due to the developer marketing above the market land price to cover their marketing costs) and also being exposed to build risk with contract variations etc hitting their pockets.
I have read here how buying H&L means over capitalising on a depreciating asset, I.e the new build cost. I would argue the depreciation benefits you are 'buying' on a new property might equate to the renovations costs of an old property, the increased maintenance costs and the hassle factor of project managing a reno or DIY.
So while I have read here a fair bit of negativity around H&L, and fully respect these views, I am particularly interested in hearing where investors have felt buying H&L worked well for them or did not. I have read here far more negative comments than positive so would like to hear some success stories too.
Please post where and when you bought H&L packages and whether you continue to have H&L as part of your investment strategy or regret having done so.
Thanks
GG
The new versus established debate is a common subject here, given it is often particularly attractive to new investors (who do not wish to buy old and renovate).
Many experienced investors are often critical of buying H&L given the risks of paying a premium (due to the developer marketing above the market land price to cover their marketing costs) and also being exposed to build risk with contract variations etc hitting their pockets.
I have read here how buying H&L means over capitalising on a depreciating asset, I.e the new build cost. I would argue the depreciation benefits you are 'buying' on a new property might equate to the renovations costs of an old property, the increased maintenance costs and the hassle factor of project managing a reno or DIY.
So while I have read here a fair bit of negativity around H&L, and fully respect these views, I am particularly interested in hearing where investors have felt buying H&L worked well for them or did not. I have read here far more negative comments than positive so would like to hear some success stories too.
Please post where and when you bought H&L packages and whether you continue to have H&L as part of your investment strategy or regret having done so.
Thanks
GG