There’s no right or wrong answer when it comes to choosing between old and new apartments.
Some buyers are steered towards an older apartment because of their budget, whilst others may be drawn to the communal amenities often found in newer developments.
This week we’re taking a look at some of the pros and cons of both, so you can be armed with knowledge on your next apartment shopping trip.
So without further ado…
Reasons to buy a new apartment
1. Newer apartments are more popular with tenants
Given the choice between an older-style unit and a new unit at the same price point, a new tenant will almost always put their hand up for the newer home.
In our experience, renters are often drawn to new developments because they like the idea of a new kitchen and bathroom. There’s something intrinsically appealing about sparkling new bathrooms and modern kitchen appliances.
2. New apartment developments often have gyms and pools
It’s not unusual for inner-city developments to include resort-style gyms and pools.
These are great for tenants or owner-occupiers that are looking for these facilities. However, it’s important to remember that these extra features will ultimately result in higher body corporate fees.
3. A new apartment should mean less maintenance
Depending on the quality of the developer, a new apartment should come with a brand new fit-out and be ready to move into. In theory, you shouldn’t have to renovate for at least 10 to 15 years.
Investors and downsizers will often buy new over old for this very reason. They typically look for a home that is easy to live in, something they or prospective tenants can move straight into and enjoy.
4. New apartments come with higher depreciation benefits
New apartments are extremely attractive to investors because of the ability to offset the costs of holding a property with tax depreciation benefits. Depending on the state (or which government is in), there may also be stamp duty savings or first-home owner incentives for newer properties.
Reasons to buy an old apartment
1. Older apartments are often cheaper
With some exceptions, older apartments are generally cheaper than newly built or off-the-plan apartments.
Older apartments also tend to have lower owner’s corporation management fees, particularly if there are no lifts or communal facilities that need to be paid for.
2. Older apartments can sometimes be bigger
Older apartments often have a larger floorplan than those built in recent years.
If you’re buying an art-deco apartment, or anything built in the 1980’s, they do tend to be larger than most new apartments being build today.
3. You can add more value to an older apartment
Many investors choose to buy property where there is a quick path to capital gains, and when it comes to apartments, the best way to add value is through renovating.
New properties will have fixtures and finishes that meet a 2019 taste palette, but these are just cosmetic things. A quick paint job and new bathroom tiles will instantly add equity and provide an even better opportunity to add value.
4. Character apartments have shown lasting appeal
Period properties typically sell better than a contemporary property, often selling faster and for a higher price.
And with character properties making up a shrinking percentage of the property pool, it stands to reason there will be even greater demand than supply moving forward.
Thinking about buying an apartment?
Get in touch with us here at Adpen! We have several apartment development projects in and around Brisbane that we’re incredibly excited to share with you.