There’s no right or wrong answer when it comes to choosing between old and new apartments. Some buyers may be steered towards an older apartment by their budget, while others may be looking for the kind of communal amenities most commonly found in new developments.
These are some of the pros and cons of both so you can go apartment shopping armed with more knowledge.
Why should I buy a new apartment?
1. New apartments are popular with tenants
Given a choice between an older-style unit and a new unit at the same price point, a new unit will often generate more interest on the rental market.
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 appliances and tiles without a hint of mould.
New apartments are move-in ready and often feature high-end fittings.
2. A new apartment should mean lower maintenance
A new apartment comes with a brand new fit out and is ready to move into - In theory, you won’t have to do anything for 10 to 15 years.
Investors and downsizers will often buy new over old for this very reason – a perception that there will be less maintenance.
3. New apartment developments often include pools and gyms
It’s not unusual for new apartment developments in big cities to include communal facilities once only the domain of holiday resorts.
More often than not the developer includes features like gyms, pools, maybe a retail component with a café, or a rooftop bar or pool
These are great for tenants or owner-occupiers looking for these facilities, but remember that ultimately this will translate to higher body corporate fees.
4. New apartments generally include outdoor space and parking
With Australians keen to embrace any opportunity to get outdoors, developers know secure parking, and a balcony or courtyard can be essential for many home buyers, so most new apartments come with both of these features as standard. Ground floor apartments may include a courtyard, with upper levels sometimes offering more than one balcony.
Developers are increasingly including more communal facilities in new apartments complexes.
5. New apartments come with higher depreciation benefits
New apartments are more attractive to investors because of the ability to offset the costs of holding a property with tax depreciation benefits. Depending on which state the property is in, there may also be stamp duty savings or first-home owner grants offered for new apartments.
Why should I buy an older apartment?
1. Older apartments are often cheaper
With art deco apartments possibly the exception, older apartments are generally more affordable than newly built or off-the-plan apartments.
Older apartments also tend to have lower owner’s corporation fees, particularly if there are no lifts or community facilities to pay for.
Buyers with limited budgets may be drawn to older apartments, which are often cheaper.
2. Older apartments are often bigger
Older apartments have a more generous floor plan than those built in recent years.
Anything built in the 1980s tend to be larger than new apartments going up today
3. Character apartments have shown enduring appeal
Period properties sell better - a period property will sell faster and for a better price
Old apartment blocks with heritage features are in limited supply.
4. You can add value to an older apartment
Many investors choose to buy property where there is a clear path to quick capital gains and when it comes to apartments, the best way to add value is via a renovation.
A new property will have mod cons and modern styling with tiles and paint that meet a 2019 taste palette - these are just cosmetic things, and while it’s a bit of an effort, it doesn’t have to cost too much to update an older apartment.
A paint job or new tiles to replace a lino floor will add instant equity for a small outlay, and a new kitchen and bathroom, while more expensive, provides an even better opportunity to add value.
5. Older apartments are often in boutique blocks
One advantage with older units is that they were usually very well built and in smaller blocks.
Many older apartment blocks had only six or 10 units and were built to stand the test of time.
Source: Domain.com.au
in Top Tips
Archived Posts
- October 2024 (2)
- September 2024 (1)
- August 2024 (1)
- July 2024 (1)
- June 2024 (2)
- March 2024 (1)
- February 2024 (2)
- November 2023 (1)
- September 2023 (2)
- August 2023 (3)
- July 2023 (4)
- June 2023 (4)
- May 2023 (5)
- March 2023 (2)
- January 2023 (3)
- December 2022 (2)
- November 2022 (7)
- October 2022 (7)
- September 2022 (7)
- August 2022 (9)
- July 2022 (13)
- June 2022 (8)
- May 2022 (9)
- April 2022 (3)
- March 2022 (3)
- February 2022 (1)
- January 2022 (2)
- December 2021 (5)
- November 2021 (6)
- October 2021 (6)
- September 2021 (6)
- August 2021 (5)
- July 2021 (5)
- June 2021 (8)
- May 2021 (4)
- April 2021 (5)
- March 2021 (2)
- February 2021 (4)
- January 2021 (6)
- October 2020 (6)
- September 2020 (6)
- August 2020 (10)
- July 2020 (4)
- June 2020 (4)
- May 2020 (2)
- April 2020 (5)
- March 2020 (4)
- February 2020 (7)
- January 2020 (3)
- December 2019 (2)
- November 2019 (2)
- October 2019 (8)
- September 2019 (6)
- August 2019 (3)
- July 2019 (6)
- June 2019 (4)
- May 2019 (8)
- April 2019 (8)
- March 2019 (7)
- February 2019 (3)
- January 2019 (2)
- December 2018 (2)
- November 2018 (1)
- June 2018 (2)
- May 2018 (4)
- April 2018 (2)
- March 2018 (4)
- October 2017 (1)
- September 2017 (1)
- July 2017 (1)
- May 2017 (1)
- March 2017 (1)
- February 2017 (1)
- December 2016 (1)
- November 2016 (1)
- October 2016 (1)
- September 2016 (1)
- August 2016 (1)
- July 2016 (1)
- June 2016 (1)
- May 2016 (1)
- February 2016 (2)
- January 2016 (1)
- November 2015 (2)
- October 2015 (2)
- September 2015 (2)
- August 2015 (1)
- July 2015 (2)
- May 2015 (1)
- April 2015 (2)
- March 2015 (7)
- February 2015 (7)
- January 2015 (1)
- December 2014 (1)
- November 2014 (2)
- October 2014 (2)
- September 2014 (2)
- August 2014 (3)
- July 2014 (6)
- June 2014 (4)
- February 2014 (4)
- October 2013 (1)
- September 2013 (1)
- August 2013 (1)
- June 2013 (2)
- May 2013 (1)
- October 2012 (1)
- April 2012 (1)
- March 2012 (2)
- December 2011 (2)
- November 2011 (4)
- October 2011 (5)
- September 2011 (4)
- August 2011 (3)
- July 2011 (2)
- May 2011 (1)