When making a large property purchase, it is natural to want to buy something shiny and new.
The appeal of a brand new property is understandable, however, buyers would be wise to consider the benefits of buying an established property.
Established homes may be located in a thriving area with plenty of infrastructure, in comparison to an emerging area where many new homes and off-the-plan developments are popping up. Factors such as proximity to transport or schools can help contribute to a strong and consistent rental return and future capital growth.
Established homes may provide a greater opportunity to negotiate a purchase, as you negotiate with home owners who may be selling for personal rather than commercial reasons. If you have the chance to converse with the vendor, discovering their motivation for selling may place you in a position to make an offer that meets their needs. For example, if they are relocating for work then time may be of the essence for the sale. Specifying a time period in your offer could distinguish you from many other potential buyers and help to secure the best deal.
Established homes still have the potential for renovations and alterations. Even simple cosmetic renovations or makeovers of the major rooms in a home may add significant value when the time comes to sell in the future.
Advantages and disadvantages exist when purchasing both new and old properties, therefore buyers are encouraged to carefully consider and actively research all options. It may pay to remember that just because something looks aesthetically pleasing – it does not necessarily mean it is the best investment option for the future.