By Kate Hill, Property Buyer, Adviseable

If you’re a property investor pondering whether to build new or buy old, let me paint you a picture.

Imagine stepping into a property where everything is fresh, modern, and built to last. No mysterious creaks in the floorboards, no hidden surprises in the plumbing or wiring – just peace of mind and hassle-free ownership.

Well, that’s exactly what building new rental properties offers, and it could make a huge difference to your bottom line.

The appeal of new builds

Let’s start with maintenance. From wear and tear to structural issues, repairs on established properties can quickly drain your wallet.

On the flip side, new constructions are built with durability in mind, using modern materials and techniques that are designed to stand the test of time.

Energy efficiency? Check. Compliance with housing standards? Double check.

New properties adhere to the latest minimum housing standards. Take Queensland, for example. These regulations ensure rental homes are weatherproof, structurally sound, and free from hazards like vermin, damp, or mould. Bathrooms, kitchens, heating systems – you name it – everything has to be functional and up to code.

So, why not start fresh and build a property that ticks all these boxes from day one? Doing so means you can sidestep potential penalties and avoid expensive upgrades that older properties may need to stay compliant.

Over in Victoria, the Residential Tenancies Regulations 2021 outline similar standards. Whether it’s weatherproofing, structural soundness, or safety features like modern switchboards, these guidelines are non-negotiable for rental properties.

Bathrooms must have essentials like a washbasin and hot and cold water, while kitchens and heating systems must be fully functional. Imagine building a property where every detail meets these criteria – no scrambling to retrofit outdated features or worrying about hidden faults.

Why it’s worth it

Let’s be honest: buying established homes can sometimes feel a bit like rolling the dice – unless you’re working with experts. You’re inheriting a patchwork of materials, fixtures, and appliances, all at different stages of their life span.

And trust me, I’ve reviewed plenty of building and pest inspection reports over the years. The number of “surprises” hiding beneath the surface of older properties can be staggering.

On the other hand, building from scratch gives you control. Everything is brand new, covered by warranties, and built to last.

Plus, the construction process involves inspections at key milestones – think slab, frame, plumbing, wiring, termite barriers, and more. These checks offer a level of security and peace of mind that older properties simply can’t compete with.

By building new, you’re not just minimising maintenance costs – you’re reducing cash-flow risks.

A newly constructed property means no prior wear and tear, fewer repairs, and no need to replace furnishings or fittings anytime soon. This translates to better financial stability, allowing you to focus on growing your investment portfolio rather than fixing issues.

And let’s not forget the tenants. New rental properties are undeniably attractive, boasting modern amenities and compliance with current standards. Happy tenants mean lower vacancy rates and steady rental income – it’s a win-win every day of the week.

So, if you’re weighing your options, consider this: building new rental properties is an investment in simplicity, stability, and long-term profitability.

It’s not just about slashing maintenance costs – it’s about creating a property investment journey that’s hassle-free for both you and your tenants.