Should You Buy New or Established? A Real Investor’s Guide

If you’ve ever found yourself weighing up whether to go with a shiny new apartment or a charming established home, you’re not alone. It’s one of the most common questions I get from clients—and the answer isn’t always black and white.

So let’s break it down. No fluff. Just the real facts, pros, cons, and a little insider wisdom to help you make the right choice for you.

The Case for New Builds

New apartments and house & land packages are attractive for a reason. They’re modern, clean, low-maintenance, and often come with a bunch of investor-friendly perks. Here’s what makes them shine:

Pros:

• Tax depreciation benefits: This one’s a biggie. New builds come with massive depreciation deductions—up to $15K–$20K per year in some cases. That can make a big difference to your cash flow, especially in the early years.
• Builder warranties: Peace of mind, anyone? Most new properties come with structural warranties (often 6 years or more), so you’re covered if anything major goes wrong.
• Tenant appeal: Tenants love modern kitchens, aircon, built-ins, and NBN-ready spaces. That means shorter vacancy rates and potentially higher rents.
• Government grants: First Home Buyers and even investors in some states can benefit from rebates, stamp duty concessions, or bonus schemes.

Cons:

• Higher price per square metre: You might pay a premium for new, especially in high-demand areas.
• Unproven performance: A new suburb or building doesn’t always have solid sales or rental history yet. It’s like dating someone you met on an app—you don’t really know them yet.
• Delays: With off-the-plan projects, construction delays can push timelines out… and sometimes test your patience.

The Case for Established Properties

Ah, the charm of timber floors, leafy streets, and solid brick bones. Established homes and older units have long been the go-to for savvy investors chasing land value and renovation upside.

Pros:

• Land content: With older homes, you’re usually getting a bigger slice of land—which often appreciates faster than the building itself.
• Proven rental yield & growth: You can check actual rental returns, past sale prices, and suburb stats. No guessing games.
• Add value through renos: Paint, kitchen upgrades, landscaping—there’s room to manufacture equity if you’re handy or strategic.

Cons:

• Maintenance costs: Plumbing, wiring, leaking roofs—older homes can come with surprises (the not-so-fun kind).
• No depreciation on the building: Unless the property was built after 1987, you might miss out on those juicy tax deductions investors love.
• Stamp duty hurts: Unlike new builds where concessions may apply, established homes can hit you harder on upfront costs.

So… Which One Is Right for You?

It really comes down to your strategy, budget, and appetite for risk.

• If you’re a busy investor wanting a hands-off, low-maintenance option with strong tax benefits → New is probably your game.
• If you love the idea of renovating, adding value, and buying in blue-chip suburbs → An established home could be your goldmine.
• If you’re planning to live in it long-term or downsizing → Think lifestyle first, numbers second. What feels right?

Pro tip: Location always trumps property type. A well-located old home will usually outperform a brand-new build in a poor area. So don’t just look at finishes—look at fundamentals like transport, schools, jobs, and future infrastructure.

Final Thoughts From Someone Who’s Helped All Types of Buyers

Whether it’s a first home, investment through SMSF, or downsizing to a sleek new apartment, I’ve helped clients across every situation you can imagine.

What they all had in common? They made the best decision once they were clear on their goals.

Still torn? Let’s chat. I’m always happy to give you the real, unfiltered insight—no pushy sales talk, just what’s smart for you.