Hi Raygun,
I'm new to this forum, but I've been advised buying new & especially off the plan is generally not as financially good as buying an older property.
I've been told this is because you can value-add to an older property whereas there's no scope to improve a new one (ie reno's extensions, facelifts).
Also, as others have already said, you're paying a premium price to the developer etc...don't believe what they're saying about a bargain!
Also, there are a lot of overheads (gym, lift, carpark hoists) in new apartment buildings...higher body corps etc.
Also, older buildings seem to appreciate (on the whole) faster than new ones. (Please feel free to correct me here as I'm no specialist by any means, just what I have read).
Might be a bit late to add much, but I believe the primary reason for slower
initial growth in
some new properties is because of that developer "profit". (Been there, done that - little to no growth for 3 yrs) Unless you have a developer who's about to go under and needs a quick sale!
As a lesser influence, new properties depreciate quicker than old properties. Although the tax man allows depreciation in a straight line, I believe the diminishing value method is a more accurate description of what happens in the "real world." Which is why there may not be much difference in rental demand b/w say, a 5yo vs 8yo property, but can be a lot of difference in demand b/w a new and 3yo property!
I wouldn't say that new places as a rule have higher body corp; in fact, an older place requiring external maintenance may be higher! I
would say that a place with a pool, lift, gym, etc will have higher BC than a place without, regardless of age.
And with renovations, one would just need to be careful not to overcapitalise - and end up spending more buying and doing up an old place than simply purchasing a new place!
Also, newer apartments are attractive to renters, but quickly lose their appeal once an even newer block comes on the market. Then you're faced with competing with the other owners in your block for tenants...not good if it's a large block ie over 30 apartments.
I think you'd be better of buying an older property for that amount. It will have some scarcity value to it as it's not going to be exactly the same as 20 others in your block.
*snip*
Agree with the scarcity factor; but again, this isn't always a new vs old argument. So maybe a bit of Captain Obvious in that lot, but hopefully helps, FWIW.