podcast

New versus old properties

By Philippe Brach
1

Philippe Brach, Multifocus Properties & Finance

 {{youtube id="BDEbuTTuJao"}}

Buying an old or new property is a very, very common question that I get. There is no right or wrong. Buying an older property that you renovate can actually increase it's value and also usually rents out a bit higher but on the flip side in an older property you've got a lot less depreciation. So it's all about numbers, it's all about working out what cash flow is on that property and the capital growth and have a nice balance between the two of them. A newer property will have more depreciation so it should be easier on your cash flow. What happens with new properties is usually a bit if a premium to pay compared to buying an older property. So it's a question of do you want a passive investment? Therefore you buy new and you're using property just to create wealth and it's a passive investment. Or do you want to have an active investment and actually participate in renovating? Therefore you can buy old, renovate, keep or sell depending on what your plan is.

 

Listen to other instalments of The Smart Property Investment Show:
Episode 70: Special episode: buyer’s agent answers more listener questions
Episode 69: Are you a ‘lazy’ investor? Consider the benefits to working with a financial team
Episode 68: Special episode: audience discussion live from the Property Buyer Expo
Episode 67: Don’t get ‘caught up in the now’: an expert reveals his tips for success
Episode 66: Wealth distribution: how should you manage your money?
Episode 65: Real estate agents: what separates the good from the bad?
Episode 64: How this investor learned from a property blunder
Episode 63: Q&A session: the SPI team answers your questions
Episode 62: Property procrastination: the importance of finding help
Episode 61: The ins and outs of strata: what buyers should consider
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
1.
FAIRLIGHT 46.02%
2.
CASUARINA 44.36%
3.
THE ENTRANCE NORTH 41.09%
4.
ULTIMO 40.67%
5.
LAVENDER BAY 40.2%