Real estate agents with a good stock of older properties should enjoy a resurgence of investor interest.
According to Laing+Simmons, first time investors are turning away from new dwellings and are instead purchasing older properties.
The company’s general manager Leanne Pilkington said older style units have proven to be a good investment, provided there is not a wave of new development happening or slated for the area.
“Purchasing an older unit in a well located suburb with little or no development planned in the future should mean that you will not only be able to attract tenants but also realise capital growth over the long term,” Ms Pilkington said.
“On the other hand, if there are new development projects in the area, an older unit may not appreciate in value. This is where the purchase of a new apartment may be a more prudent investment.”
According to Ms Pilkington, new apartments have greater potential for capital growth over the long term, appeal to a larger variety of tenants and have fewer maintenance costs.
“Ultimately, it depends on what the investor is looking for from their investment. If you are after a steady, predictable recurring income stream then an older unit in an established suburb might be the best option. The main concern will be maintenance costs to keep the property to a suitable standard to attract tenants.”