Why buying new property is a better investment
Property investment is a numbers game. It’s all about maximising your income and minimising expenses, and while that sounds simple enough but there’s a few tricks to it.
The first and most important step is to choose the right kind of investment property, one that’s not going require improvement right away, be expensive to maintain or difficult to tenant. Nothing ticks those boxes better than brand new property in Christchurch or Auckland – here are three reasons why.
New legislation can make owning existing property expensive
Under new legislation rental properties must have ceiling and floor insulation that meets the 2008 building code. Among other requirements, they must also have a fixed heating device that is capable of keeping the temperature in the living room at a minimum of 18 degrees.
Bringing an older property up to these standards can be extremely expensive, with insulation alone often costing thousands of dollars. Often old homes can’t even be insulated underfloor due to being too low to the ground.
If you buy a new investment property in a high quality development it’ll meet these standards from day one. Everything Williams Corporation builds is completed above building code, with thick insulation throughout and smart passive design to ensure they’re always warm, dry and ready to rent.
Tenant demand may be higher for newer, higher quality properties
While older generations are used to uninsulated villas, today many tenants have experienced what living in a comfortable, warm new home is like and they expect more as a result.
That’s why young families and professionals are often more attracted to new build rentals in premium locations near the city. If you buy a new investment property this could give you access to a larger pool of high quality tenants to choose from and a lower vacancy rate as a result.
Further to that new properties often show the same rental yields as older ones, which means you’ll own a higher quality asset with the same or similar returns as a lower quality, older one. That means more money in your back pocket in the long run.
New properties are better for tenants
You might be investing in property to make money but at the end of the day it’s important to remember that you’re providing a home to people, which is a massive responsibility. As a decent, ethical human the last thing you’ll want is for your tenants to be cold, miserable and sick living in a home that’s damp and falling to bits.
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