Property investment is not just about whether you decide to buy a unit or a house, you also have the option of new or old.

There are advantages for both styles of properties, and it really comes down to your short and long term objectives. Where you intend to purchase the property will also influence what type of properties are available in a particular geographic location.

Purchasing a property off-the-plan – which allows you to lock in today’s prices for a property that may be finished in a year or two in the future – can be an effective investment strategy as you will not have to make any mortgage repayments until the property is ready for habitation. The only cost will be the deposit.

The key potential pitfall with an off-the-plan purchase is that there is no guarantee that the property you buy today will have grown or even maintained its value.

The downside of this is that your lender may not be willing to fund the entire purchase price, which will leave you with a shortfall.
There are also pros and cons associated with the purchase of an existing property.

One of the key benefits is that during a slower market you might have greater scope to negotiate on price. In addition, you may be able to add value through renovation – which will modernise the property and possibly help you achieve higher rental return. On the flip side, existing properties may require more maintenance or have serious structural defaults – which can be expensive to fix. It might also be more difficult to attract tenants to older properties.