Yes, what’s best for the rental property investor when looking to buy? Consider a new property or one a few years old? Everybody likes new, so it’s important to put your emotions to one side and work out what will give the best return. My experience in property investing is that its likely a property a few years old will make me the best investment.
True, it won’t have the brightest finishes or contain the latest appliances, but there are good reasons to consider an older property. My recent purchase was in Gladstone. More info here,
http://shrvl.com/PK9B6 Before my visit to Gladdy I did a lot of research and knew exactly what the type of property I wanted to buy. It was a 4x2x2 in a location not too far from the CBD and close to schools, shopping, entertainment and transport.
Why not buy new? There is a lot of new property for sale in Gladstone. House and land packages. Although a new property will provide the maximum depreciation tax deductions, a property a few years old will still have many years or valuable depreciation benefits. And, depreciation can make the difference of making a property cash flow positive and assisting in the investment growth. For me, I don’t like the thought of paying developers premium on a house and land package.
I believe a house say 3 -6 years old can be purchased without a developers premium offering better value. The location could be better as well in a more established location and likely larger land size as well. Rental values should not be that much different either. A property over 10 years may also offer the opportunity of a cosmetic referb, including possible rendering, painting and floor coverings. This could lift the capital and rental values showing a faster property return.
Using an online investment property advisor and manager will assist in making property wealth faster. The determined property investor will always be looking to outperform the market by finding rental investment properties in growth areas to maximise his wealth creation as fast as possible.
Cheers
Antony
www.MyProp.com.au