There is much debate, and often much confusion when it comes to choosing between new and old properties. In this article, I hope to highlight the pros of investing in new properties vs old properties.

For many property investors, they like to invest in old properties because they appear cheaper. There’s also potential to add value by renovating and people think they can pick up better value in older properties.

But let me highlight what I see as the benefits of buying a new property over an old property.

1. Greater Value For Money

When investing, you have to weigh the benefits of the property over its cost. New property may appear more expensive, but has a much greater value for money as all the fixtures are new and will not have to be replaced for many years. You also do not have to worry about the structure and issues with the building because it is covered by builder’s insurance for 7 years after construction.
You will also get higher rental yield for new properties as they are more desirable to renters compared to older properties. Hence this gives you a better return on your investment.

2. No Renovation Costs And Lower Repair Costs

For the most part, renovation is not a requirement when it comes to new property. However, in the event that you wish to add value through renovating, you can spend a lot less on the renovation as compared to what is usually spent on old property. With older properties, renovating them can open a can of worms; you will often find new things that need fixing and repaired. It’s no secret that most renovations can massively blow out their budget. That to me is a risky investment. Many renovators do not factor their time spent on renovating their property either.

In general, older apartments and townhouses have the disadvantage of having higher payment for body corporate fees. To top it off, in many apartments and townhouses, where a major repair is required, a special levy might be imposed which can really impact your bank balance.

For older properties, you will also have the hassle of constant and never-ending repairs just to keep the property livable. I personally would prefer to spend my weekend on the beach than supervise a plumber fixing my toilet!

3. Higher Re-Sale Value

If you invest in property so that you can sell it off later for a profit, you will find that the best option for you would be to invest in new properties. Usually where property is concerned, the newer it is, the higher its resale value in the property markets due to its desirability.

Generally, if you have a new and old property side by side, buyers will consider the wear and tear of both properties. It is not uncommon to have buyers willing to pay an extra 10% or more for a newer property as they understand the cost and hassles of maintaining an older property.

4. Tax Benefits

This is a big one for people who have huge taxable incomes! Negative gearing allows for your property to be depreciated over the years, this depreciation can apply to your personal income as a legal way to reduce your taxes. Effectively, the tax man is paying partially for you to own your investment property, essentially increasing your take home income! New properties have the benefit of massive depreciation. With older properties, you will not get anywhere as much depreciation as you would with new properties!

New Property5. Greater Aesthetic Value

In today’s property markets, the aesthetic value of a property is just as important as the property itself. Buyers and renters increasingly want to live in modern properties with modern features and are willing to pay a premium for that privilege. Buying new properties will give you greater aesthetic value as compared to old properties.

6. Better Leverage

For old properties in many cases, you have to come up with a 20% deposit upfront to purchase the property and apply for a loan. This can kill your ability to invest in other opportunities in the meantime.

On the other hand, if you were to secure a new property off the plan, you’d only have to pay a 10% deposit and benefit from any capital appreciation for the 2 years while you wait for completion. You don’t require any bank loans in the meantime either. This frees you up to save up in the meantime and acquire another property in a prime location for only a 10% deposit. Using this method you can build up equity and wealth rapidly.


For most busy working people and business owners, new property often represents a better, stress-free investment that can also help you enjoy many tax benefits. I hope this article has convinced you of the merits of investing in new properties.