When it comes to property investment, making the choice between purchasing new property versus an already established property seems to continually divide opinions and pose as a conundrum for new investors.
At ASR Property Investment, however, although we’re of the belief that there’s a place in any well-rounded investment property portfolio for both new and established, due to our strong belief in the resounding benefits of new property, we’ve chosen to specialise in this arena exclusively. Our long-term relationships with developers provide us with unrivalled access to developer stock that is otherwise unavailable to the wider market.
Our classification extends to any dwelling that is brand new, has not previously been bought or sold, and is yet to be occupied by a homeowner or tenant. Typically, new property is either ‘completed’ or ‘off the plan’.
ASR Property Investment strongly believes there are significant advantages available to the investor when purchasing newly completed or ‘off the plan’ properties. These advantages can sometimes be overlooked. For the investor’s reference we’ve outline some of the key benefits:
With its contemporary design and finish and untarnished condition, the appeal of a new property can provide an edge when seeking tenants or a future buyer.
Depending on which state the property is located, generous stamp duty concessions may be applicable when purchasing off the plan. This could potentially save the purchaser thousands of dollars in upfront costs.
The newer the property, the greater the tax deduction via depreciation. This in turn can significantly improve cash flow, effectively making property ownership more affordable to the investor.
‘Off the plan’ transactions provide the purchaser with exposure to the property market and associated capital growth during the extended settlement timeframe. This means that the buyer can potentially get a tidy investment return before the property is even completed, and with the right measures in place this can also be achieved with no money down.
Newly constructed property means no prior wear and tear, greatly reducing the need for ongoing maintenance or the replacement of any furnishings or fittings. This not only equates to a more cost-effective property, but also contributes towards making property ownership hassle free and more lucrative.