In this episode of "Property Invest Mate," Mauricio from Yesi Education tackles the debate between investing in old versus new properties, focusing on the merits of established properties over new or off-the-plan ones. He starts by acknowledging the common dilemma for many new investors: whether to opt for a brand-new property or an established one. Mauricio explains that while the allure of new properties is strong due to their pristine condition, established properties generally offer better investment returns.
He details the advantages of choosing established properties, such as the ability to review historical transaction data which provides insights into the asset’s performance over time. This data helps investors see trends and growth patterns, allowing for a more informed decision. Mauricio also points out that new properties often come with additional costs like marketing and developer’s commissions, which can inflate prices without offering comparable value.
Furthermore, he discusses the tangible benefits of inspecting an existing property, assessing its condition firsthand, and verifying all aspects like structure and dimensions, which is not possible with off-the-plan properties that are yet to be constructed. While new properties offer higher depreciation benefits, Mauricio argues that this does not typically offset the additional upfront costs.
He concludes by advising that while there are exceptions where a new property might make sense, in general, established properties are a wiser choice for those looking to maximize their investment returns. He encourages investors to conduct thorough research and consider all factors before making a decision, emphasizing that established properties usually provide better value and fewer surprises.
This podcast episode is brought to you by YESI EDUCATION.
Ep 3 - Is it better to buy an old property or a new one?