Buying An Older House Vs Buying a New House: Benefits & Risks
As a home buyer in Australia, one of the first decisions you’ll face is whether to go for an established property or a new property.
It’s a choice that can affect your lifestyle, your finances, and your future happiness. So, let’s break down the risks and benefits of each.
Buying Old Homes: Benefits & Risks
Old houses have their unique appeal. From the character to the craftsmanship, there’s a lot to love about buying an older Australian home. Plus, a well-maintained older home in a good area can see a solid increase in property value over time.
However, older homes can come with their fair share of challenges. You might be looking at higher maintenance costs, hidden damage and smaller returns.
|Character and Aesthetics: Older homes often have unique character and aesthetic appeal.
|Hidden Damage: Risk of undisclosed structural issues that can be costly to repair.
|Value Add Opportunities: Potential for renovation or subdivision to increase profitability.
|Low Depreciation: Lower tax depreciation benefits for investors compared to new properties.
|Established Neighbourhoods: Often located in well-established areas with mature landscapes.
|Smaller Returns: Older properties may attract lower rental returns compared to new ones.
|Comparables in the Market: Easier to estimate the property’s value based on similar sold properties.
|Maintenance Issues: Older properties may require more maintenance and repairs.
|Emotional Appeal: Strong appeal to buyers and renters who prefer period homes.
|Easements/Caveats: Potential title issues that could affect property plans and usage.
Settled Tip: If you’re leaning towards an older property, don’t skip the building inspection – it’s crucial.
Buying New Homes: Benefits & Risks
From modern floor plans to the latest in energy efficiency to tax incentives, there’s a lot to love about buying a new home.
However, just because a property is brand new, it doesn’t guarantee that it’s entirely free from problems.
|Building or Structural Integrity: New homes are less likely to have immediate structural issues.
|Unpredictable Growth: New properties, especially in recently zoned or growing areas, may have slow capital growth.
|Modern Amenities: They often include modern luxuries like ensuite bathrooms, swimming pools, and energy-efficient designs.
|Cookie-Cutter Design: Many new developments lack uniqueness, with many similar properties hitting the market.
|Tax Incentives: Higher tax depreciation benefits for investors, reducing holding costs.
|Possible Delays or Extra Costs: Risk of delays in construction and potential variance in price.
|Stamp Duty Savings: Significant savings in stamp duty, especially for off-the-plan purchases.
|No Established Character: New properties may lack the character and established feel of older neighbourhoods.
|Maintenance: Generally lower maintenance requirements and costs.
|Building Issues: Despite being new, some properties may have faults due to poor construction.
Making Your Decision: Old Home Vs New Home?
So, how do you decide? It comes down to what you want and need. Are you buying your first home, or are you looking to upgrade?
Do you fancy the charm of an established neighbourhood, or are you drawn to the lure of a brand-new home in a developing area?
A good real estate agent and conveyancer team can be worth their weight in gold here, giving you insights into the housing market and helping you weigh up your options.
Let Settled Experts Help You Buy Your Home With Confidence
When you’re buying property, avoiding risks is key. That’s where our expert conveyancers at Settled come in.
We’re a team of professionals who truly understand the ins and outs of buying property – and we’re here to support you every step of the way.
Choose Settled.com.au, and make your property purchase easy and worry-free.
Buying Property FAQs
What role does a conveyancer play in buying new properties?
When purchasing a new property, especially off-the-plan, conveyancers help review development plans, check builder credentials, and ensure that contract terms are favourable and protect your rights in case of delays or other issues.
Can conveyancers help with negotiations?
Yes, conveyancers can negotiate on your behalf. This includes price negotiations, settlement terms, and any special conditions you might need, based on the property inspection and your personal requirements.
Do I need a conveyancer when buying property?
No, it’s not a legal requirement to have a conveyancer when buying property, but they can really help. Conveyancers have the expertise to handle the legal aspects of property transactions, making the process smoother and less stressful for you.
They can navigate the paperwork, legal requirements, and any complexities that might come up. So, while it’s not mandatory, having a conveyancer is a wise choice to ensure a successful and hassle-free property purchase.