Just wondering what the main benefits are to building a property brand new opposed to buying existing and renovating are. Are there any additional tax benefits to building new?
Are most properties that are built brand new for investment purposes usually done for rental return or capital return….or a mixture of both? I know it will vary depending on areas but for pure investment purposes is it largely just build it and sell it for a hopeful profit?thanks,
Looking at a like for like – my preference is to buy existing and rent it out asap to get the rental income. Perhaps with some minor alterations so that I use as little cash as possible.
Building new will give you additional depreciation of the building and fittings which tax wise might be attractive.
Remember building will take time and you forgo any rental income in that time.You might however find that developing an existing site with a duplex (or other) to increase rent further might be another reason to do so…
Well.. one big disadvantage of it is the budget and all the hassle..
I guess buying something that already exist is something that will make you have a worry free and hassle free day to day as you make your money work for you. The only worry you'll have to deal with is to get the best one you can find. But that's not so hard this days that real estate are mostly found online as well.
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