New Property vs 2nd Hand Property

[takeitnow]

This weekend I have been calling a few real estate agents in Queensland about various investment properties. (some of them are properties advertised on the Investment Club website so I was also comparing prices).

However, what I noticed is that as soon as I gave the address of the place I was interested in (all brand new Units or Townhouses) each agent quickly suggested there were much better places available that they could offer me. All of these new properties were listed with the Agents I called and each alternative offered was 2nd hand. They did seem quite cheap with a reasonable rental return. But I can't understand why they immediately tried to turn me off the new places.

Can anyone offer any insight into why they would do this? Are they really trying to steer me in the right direction? That doesn't really seem likely because they are there to sell their homes and surely they would want to sell the more expensive places?

I love this forum it is great to have somewhere to discuss things and I have learnt heaps just trawling the posts!

 

[BuildingBlocks]

Maybe they don't have an exclusive agency agreement on the new places and would have to settle for a split/lower commission?

...they may also be better properties they are referring you too.

 

[takeitnow]

Thanks Building Blocks, that makes good sense and because TIC have it on their website, the Agent would not have exclusive rights.

 

[Ed Barton]

This weekend I have been calling a few real estate agents in Queensland about various investment properties. (some of them are properties advertised on the Investment Club website so I was also comparing prices).

get over tic and move on. you have a free and unbiased investors club here. keep asking questions.

However, what I noticed is that as soon as I gave the address of the place I was interested in (all brand new Units or Townhouses) each agent quickly suggested there were much better places available that they could offer me.

they might be chasing higher commission, but they might be trying to avoid you the pain of a tic property?

All of these new properties were listed with the Agents I called and each alternative offered was 2nd hand. They did seem quite cheap with a reasonable rental return. But I can't understand why they immediately tried to turn me off the new places.

have you ever bought a new car?

new houses are like new cars, you pay for the shiny new smell that comes with them. buy a near new house and you will get near new depreciation without the price tag.

Can anyone offer any insight into why they would do this? Are they really trying to steer me in the right direction? That doesn't really seem likely because they are there to sell their homes and surely they would want to sell the more expensive places?

real estate agents and spruiker companies work for themselves.

I love this forum it is great to have somewhere to discuss things and I have learnt heaps just trawling the posts!

yes it is. keep posting and you will learn heaps more.

 

[takeitnow]

Thanks for the insight Ed, I am listening to everything that's said on here

 

[Jamie M]

Were the units/townhouses finished or were they still at development stage? If the latter, there could be a while before settlement (pay day for the REA) - that could possibly impact on their behavior.

Cheers

Jamie

 

[Ms Jade]

takeitnow, I notice you're in Melbourne. May i ask how you decided on new apartments in Qld as your investment strategy? Is there a particular suburb that you've researched?

 

[Ocean Architect]

I agree with what has been said in this thread. Commissions on old houses can be as much as double that of new developments (at least where I am).

Imo find out who the owner of the new townhouses are, find out if they can negotiate directly with you (ie general agency agreement), chop the real estate agents out of the picture, and negotiate the price downwards since the owner doesn't have to pay the agent a commission.

 

[redwing]

New Vs Old
Units Vs Houses​

Always topics of interest and debate here on the good ship SS

Some great threads if you use the search function also

 

[veebeeseewee]

I havent had any investment experience, but I learnt from my 'mentor' who is an experienced landlord who owns fair bit of properties, she once told me before, that she prefers well-established houses over those new ones because the second hand ones have been lived in and people who lived there would know what's missing and what needs to be done or added, so everything is ready for you when you buy to move in or to invest. Whereas for a brand new house, many things might not be installed yet or make it a complete house, unless you dont mind spending more $$ (+ time) into the property on top of what you're paying.

I went to see both new and second hand houses on the same street one day, the agent pointed out the difference between these two houses like the new one - eg no phone plug and no security screen doors, and I could see bakyard full of weeds and lawn was not established but of course, everything was brand new eg split system, stove oven, kitchen, oven. The old one - everything was there, even with a beautiful garden and well-taken care backyard, except I saw a little crack on the wall-but it's double brick so can be easily patched up. Price was more or less the same - slightly cheaper to get the 2nd hand one.

Hope my info helps.

 

[marg4000]

Make appointments with 2 or 3 agents, get a cheap flight and come up to have a look for yourself.
Marg

 

[Rixter]

New Vs Old
Units Vs Houses​

Same as..........

New v Secondhand
Ford v Holden...

No right or wrong ... just preference.