iBuyNew as the name suggests, focuses solely on new and off plan properties and we chose this for a very specific reason.
We believe that as investors with good careers, good income and a family life, the last thing that we want to have to deal with are surprises in our property investment. Surprises such as rental vacancies, special strata levies, the shower has stopped working or how I’ll have to project manage a minor or full renovation in order to realize the full rental potential of an investment property.
A new property will last you through a full property cycle of 15 years or more with extremely minor maintenance issues and virtually none in the first 10, provided that you chose a property by a builder with a good track record. iBuyNew works only with builders and developers with established records for this very reason.
Sure, you do pay more for new and off plan compared to something that is more established, with the price difference being in the tens of thousands of dollars depending on the age difference. A lot of people see that as poor value, but consider a simple analogy. Would you pay the same price for a 20 year old car as you would for a 2013 model?
Established properties are perfect for people who have the time and enjoy managing the maintenance required for an older property and don’t mind getting their hands dirty. They may also have a good equity buffer in another property that they can dip into, should a special levy for serious structural repairs be sprung on them costing tens of thousands.
With new, you can recoup a lot of the premium that you’ve paid through depreciation that could be as much as $16,000 in the first year. If you’re in the top tax bracket, that’s $8,000 back from the tax man gone back toward building you wealth with minimal headache, fuss and uncertainty.
The price of new is a fair price to pay for peace of mind and a superior, more desirable property.