Brick to the Future: Property Investment Show
BRICK TO THE FUTURE is the property investment show for everyday Australians. We cut through the white noise so you can minimise risk and make smart informed investment decisions.If you're after tips and strategies while building a property portfolio that suits your lifestyle, you're in the right place!
Brick to the Future: Property Investment Show
Season 4, Episode 73 - How Smart Investors Make BIG Money with New Homes (and Avoid Costly Mistakes!)
•
OpenCorp
•
Season 4
•
Episode 73
Cam McLellan & Allister Lewison discuss the pros and cons of buying new versus established properties for investment purposes. The key takeaways include:
Why People Prefer Established Properties
- Visual Appeal – Buyers are drawn to what they can see, such as a well-maintained house with a nice garden.
- Emotional Connection – Buyers feel comfortable with the ability to physically inspect and envision themselves in the home.
- Fear of Construction Issues – Concerns about builder reliability, project delays, and unexpected costs deter some buyers from choosing new builds.
Why New Builds Are a Better Investment
- Lower Maintenance Costs – New homes require fewer repairs, whereas older homes often have unexpected expenses within months of purchase.
- Higher Rental Yield – New properties tend to attract tenants faster and command higher rental income.
- Stamp Duty Savings – Buyers only pay stamp duty on the land value, making upfront costs lower.
- Depreciation Benefits – Tax advantages from depreciating fixtures and fittings help investors reduce taxable income and offset holding costs.
- Cash Flow Control – With new builds, costs are more predictable, reducing financial strain on investors.
Avoiding Overcapitalisation
- Investors should avoid building excessively large homes that won’t yield proportional increases in rent or resale value.
- The optimal property size and design for a given area is crucial for maximising returns.
- OpenCorp applies data-driven methods to ensure clients don’t overspend on unnecessary features.
Lessons from Experience
- Cam shares a personal anecdote about a past investment mistake involving a poorly planned development that led to unnecessary expenses.
- Learning from such experiences has allowed OpenCorp to refine their investment strategies, ensuring clients make smarter financial decisions.
Facebook: http://www.facebook.com/opencorp
Twitter: @OpenCorp_au
LinkedIn: https://www.linkedin.com/company/opencorp-au
Instagram: @OpenCorp