They say there is nothing quite like the feeling of something new, but does that mean anything when buying a new home?

Whether it’s new clothes, a new car, or maybe even a new house, there is a certain rush that goes with purchasing something new. Therefore it’s not hard to understand why buying a newly built home or investment property is a popular purchasing choice for many Australians. One of the most attractive aspects of buying new is that it often requires fewer upfront costs. Many unforeseen costs, maintenance fees or repair bills, for example can quickly eat into your money you aim to save by purchasing an existing dwelling.

Moreover, newly built properties traditionally carry a warranty of several years so if you do happen to run into teething issues with your new purchase, the warranty can help.

If you are in the market for an investment property, a new home can certainly be a wise choice. Not only will the new look & design appeal to potential tenants, contemporary building standards can mean a greener, more suitable investment. Also keep in mind that new utilities and appliances, such as bathroom, kitchen & heating can be a huge drawcard for tenants and should be considered when you come to negotiate the weekly rent.

Finally, don’t overlook the depreciation and taxation benefits associated with purchasing an investment property as well as the government incentives that come with purchasing a new home to live in. Benefits are often at their greatest when a property is brand new.

New & older properties both have their pros & cons and whether a new property is right for you is ultimately down to your specific situation. If you are not sure, getting professional advice would be a good next move.

Tread with caution

There are many advantages to buying a new property over an existing dwelling, but as with all property-related decisions, caution is necessary.

To minimise risks, consider the following before making a purchase:

• Capital growth is not guaranteed- whether you purchase a new or an older property
• Research is essential- be absolutely certain to do your homework on the property market and purchase in an area that is more likely to offer growth potential.
• Know with whom you’re dealing- Unfortunately, there are several stories of builders who go bust during a development or turn out not to be professional operators. Take note of the builders’ history and speak to family and friends regarding builders they have used in the past.

To discuss this topic with John, please contact him on 0749722081 or 0410433919. You can also email him at jwhitten@ihl.net.au or look him up on the net www.ihl.net.au. John Whitten is a credit representative (CRN 399796) of BLASSA Pty Ltd (Australian Credit Licence No 391237).