For property investors seeking stronger rental returns, brand new houses and apartments can be the better option.
This is because, like-for-like, brand new houses will generally attract a rental premium over older housing stock, simply because they’re more modern.
Brand new houses and apartments can also provide tax benefits through depreciation and may require less maintenance costs. The downside of brand new properties is that they will typically cost more, like-for-like, and you’ll be paying more for the building component of the property.
Apartments can provide stronger rental returns, compared to houses, as these are typically located in close proximity to desirable amenities, such as cafes, train stations and employment hubs, and are typically at a lower price point. However, it’s important to be mindful of strata fees, which can be a big expense for investors. Strata fees are typically higher in apartment complexes with more shared facilities, such as gyms, pools, saunas and lifts.
To gauge the potential rental yield of a particular type of property in a specific area, visit online real estate portals to see the advertised rental and sales prices. You can then calculate the potential yield. It’s important to note that these are simply the advertised prices and the final rental or sales price can be different, however it will give you an indication.