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Newly Built Properties – The Best of Both Worlds

Newly Built

The benefits and downsides for purchasing both established properties and off the plan properties has been widely documented for many years in the real estate world.  There is currently a trend to reap benefits of both worlds by purchasing a property that is brand new and already built.

One of the biggest ticks is that being a new property means it a single contract process.  Not only does this make financing as well as the contract process in general a lot smoother, but it also makes it eligible for SMSF in most cases.  It also means that the process is a lot shorter too – no drawn out waits.  Some off-the-plan properties can be a year or more in the build.

Depending on the area, some newly built properties will have the benefit of relating sales records. For example, buying a property in an estate that has been under construction for a year will provide the purchaser with an idea of sales records as well as vacancy rates.  Whereas, purchasing in a large block of units that are still yet to be built, won’t have a record of resales or rentals to date – it would rely on if there are similarly aged units in the surrounding area.

Of course then there are the obvious benefits of off-the-plan properties that newly built ones will stay have; better bills, quality tenants, minimal maintenance etc… (see article here for more detail).

One of the major benefits that established properties have, that newly built will also have is the ‘what you see’ factor.  Being built means there is something tangible for buyers to actually view.  They can view how the house falls on the land, how the light filters into each room, the aspect and of course, the finishes.

The biggest, and essentially, the most important advantage for investors – cashflow.  Built means it can be tenanted immediately which means incoming cashflow immediately.  And who doesn’t love that?!

Buying newly built properties does offer a best of both worlds for investors. Tandem54 have a range of newly built properties to acquire for your portfolio – contact them today.