3 reasons you should always buy new
Going down the path of real estate investing to create or build upon your wealth gives you a plethora of options. Units, apartments, townhouses, detached properties - as an investor you're able to find something to match both your budget and your goals.
But with many options on your plate, you might have a hard time deciding on the best type of property for you. So what makes brand new properties so special?
You can lock in prices through off the plan
Aside from the low cash rate and strong economic growth in certain areas, house prices are also giving current investors something to be pleased with. Brisbane and the surrounding Queensland area have had a positive year for price growth, and while this is a good sign for existing investors, it could lead to restrictions for those who want to buy an established house. This is when buying a property off the plan is a good move to make.
When you buy a brand new property off the plan, you're able to lock in a great fixed price in your contract of sale. What this means is that when the property has finished being built, you might end up with an asset that's worth more than you originally paid. Basically, you're earning money while your property is still being constructed.
You can also just pay for the deposit for the property when you sign the contract, while the remaining balance is due once the dwelling is completed. Not only does this mean it's an easy purchase for investors who already have equity in other properties, but it gives them ample time to save up before the property is finished.
They're built in developing areas
Australia's population has been rising rapidly for years, and with this change in population, many cities have seen structural changes, too. New homes go where the people go. But they're also constructed where human development and jobs move. Up and coming areas tend to bring with them infrastructure investment in things such as schools, hospitals, roads and commercial and retail precincts.
Properties in proximity to these types of amenities will benefit not only from potential capital growth, but also a strong pool of tenants.
It's a quality asset with a guarantee
When you buy a brand new property, it's exactly that - brand new. This means it won't have any structural damage or wear and tear caused by previous owners and, best of all, most brand new properties in Queensland will come with a guarantee. This can give you peace of mind for your investment, as your property may come with a structural warranty from the builder to cover any problems that may arise.