Aside from what has already been said on new vs old investment property, the stark reality is that most people lead busy lives and find themselves time poor. Over the year we have dealt with countless would-be property investors who had had the very best intentions for years to find a property to buy and renovate.
Invariably, because that is considered a ‘big rock’ (i.e. a major project) it tends to get pushed aside ‘for now’. Five years later, 10 years later and even 15 years later these same would-be property investors have made no progress towards securing their financial futures. Had they simply bought one, two or perhaps more new investment properties (correctly and responsibly, of course) and then got on with life, they would be in much better standing.
There’s two phases that face us as property investors. Firstly the accumulation phase, which could be likened to a farmer ploughing the ground and then sowing his seed. Once you have set up your portfolio of investment properties you can get on with life and allow time and inflation work for you - perhaps for the first time in your life. Just as time and inflation drives down the value of the cash you have hidden under the mattress over a 10 or 20 year period, so too does it drive down the real value of the debt you have against your investment properties, as they continue to rise in value. To better understand how to make time and inflation your two best wealth creation friends speak with MRD today.
If you are conservative by nature and like to avoid unnecessary risk-taking then the arguments for investing in new over old property win out. You don’t have to be a renovator, time the market, give up your nights and weekends and risk overcapitalising your property. There is a place for renovating and some people are very good at it. Most of us, however, are very good at something else.
Speak to an MRD property strategist today on 1300 883 854 or contact us