The question of In 2020 Do I Invest in new property or an old property? Is the question on every new and experienced property investor.
So far this year of 2020 has definitely proven to be one we all could say ‘we didn’t expect. We have all be affected in different ways as this health crisis continues to play out and the economic challenge it inevitably leaves in its wake.
We have witnessed financial and equity markets rise and fall and rise again, currency markets up and down and talks of property prices dipping, but as yet, we are only seeing slowed clearance rates across the board. The question is, if you are building an investment portfolio, especially one that includes property, ‘where to from here?’.
In this current climate and market, what should I buy, a new property or an old property? This is a question that is usually only reserved for many first-time investors but now is a question even the gurus are not unanimously decisive on.
Is it wiser to purchase an older property that can be improved on, or a new property that delivers instant tax incentives and no upfront work? But old property on the other hand could give you the ability to add value through renovations / development. There are advantages and disadvantages to both types of investment, there is no right or wrong answer. Ultimately, it depends on the investor’s own goals and strategy, and taking a deeper look at the market and property conditions.
Money is at all time low rates to borrow and so it makes the idea of borrowing to buy a new property enticing, but also the ability to borrow against your existing mortgage at low rates to renovate is equally enticing.
Whether it is a new property or an old property that you are wanting to renovate, it would be worth downloading MakesCents.com.au’s new FREE property investment report to assist you.
The report from MakesCents can also help connect you to a property specialist for a free strategy session to help you with your next investment.