podcast

New versus old properties

By Philippe Brach
1

Philippe Brach, Multifocus Properties & Finance

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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 61: The ins and outs of strata: what buyers should consider
Episode 60: The pros of using a buyer's agent: why this investor brought someone in
Episode 59: How to invest in property as a team: two investors share their secrets
Episode 58: When do you stop investing? The SPI Show answers more listener questions
Episode 57: Wealth creation through property: trends and themes to think about in 2017
Episode 56: The SPI Show accountant reveals all: How to pick your financial team
Episode 55: The reluctant property investor: How necessity drove an 18-property portfolio
Episode 54: The SPI Show Q&A: Listener questions answered honestly
Episode 53: 6 properties in 2 years: how this investor is achieving his goals
Episode 52: Will property prices fall? When? And by how much? What investors need to know

About the Blogger

Philippe Brach

Philippe Brach

Multifocus Properties & Finance was established in 2005 with the aim of mentoring investors to create wealth and invest in their future by building an investment property portfolio.

The company is led by Philippe Brach who has over 25 years experience in the international corporate world specializing in finance, accounting and investment. He is a fully qualified and extremely experienced real estate agent, concentrating his attention solely on investment opportunities around Australia. In addition he is a highly regarded mortgage broker, being accredited with around 35 different lenders.

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