As property managers, we work with apartment owners who are part of the Wellington property investment scene. They’ve decided to either purchase an apartment purely as an investment or are wanting to rent out their own home while they live elsewhere, often due to work requirements. While we do not claim to be property investment experts, we are happy to share what we have noticed are some of the commonly known differences between purchasing a new build verses an existing apartment.
Should You Invest in a New Build or an Existing Apartment?
Looking through the Wellington apartments for sale you’re going to see a combination of new builds and existing properties. As an investor, you’ll want to do your due diligence in deciding which option is best for you. To help you get started with this, we’ve listed the key features of both types:
New build apartments:
- Initially have fewer maintenance issues
- Can currently be financed with a 20% mortgage deposit for investors
- Often meet Healthy Homes and current building standards
- Increased market appeal and higher rental demand
- Often smaller than existing apartments
- Often located further from the CBD
- May come with building warranty from developer
- Can be ‘cookie cutter’ in design
- Can be brought off the plan, which may provide a discount
- Likely to have multiple resident amenities
Existing apartments:
- Are usually larger than new builds
- Often located closer to the CBD
- May need costly repairs or maintenance
- May not be Healthy Homes compliant
- Require a higher 35% deposit for mortgages from investors
- May not meet current building standards, requiring costly remediation
- Likely to be lower in purchase price
- Tend to provide higher gross yields and better cashflow
- Can potentially increase property value through renovations
Here at HiAtlas, we work with owners of both newly built and existing apartments which are of a high standard. This often means that consultation with an interior designer has been made, the finishings are perfect and the furniture within is top quality. This satisfies our tenants who are looking for high-end furnished apartments, and then their personal preference between new and existing build apartments.
If you are considering long-term renting of your Wellington apartment, talk with us. As your local property management company, we provide our clients with excellent customer service, the best available tenants and assistance in preparing the apartment for rental if required.