New Property V Old Property for your investment
Basically you will find that cash flow on a new property is significantly better than in buying an older property. A new investment property around $500,000 could have in excess of $16,000 depreciation in the first year; an older property may have virtually nothing in depreciation. Older properties can have many hidden traps leading to costly repairs and maintenance, newer properties are usually ‘guaranteed by the builder for at least 7 years against any structural problems. Buying new has many advantages including peace of mind with lower maintenance costs, generally a higher yield on a comparable older property and they are likely to attract a better quality tenant.
