Old and new apartments compared: Which one is the better buy?

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