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 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
Episode 51: SPECIAL EPISODE: SPI team reveals all the financial details of its portfolio
Episode 50: 8 properties by 25: Former housing commission kid reveals how he changed his life and created wealth
Episode 49: How to build a sophisticated multi-property portfolio
Episode 48: ‘From just $2,000 in my pocket to 6 properties’
Episode 47: The SPI Show answers more listener questions: Special episode
Episode 46: 4 properties by 24 – how to build a portfolio without sacrificing fun, travel or food
Episode 45: Special guest Mark Bouris on what really makes property prices rise and when to invest
Episode 44: ‘11 properties by 31, now I’m stuck: What’s next?’

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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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