The decision to expand your portfolio is an exciting, albeit maybe daunting, prospect heading into the New Year. With rising interest rates, cost of living woes and changing property markets, it is understandable that many investors are proceeding with caution.
However, good decisions now pave the way to a strong future, and property continues to be a solid long-term investment option for generating wealth.
Finding the right property to purchase is a process not to be rushed. Apartment vs single dwelling, acreage vs high rise, old vs new; they all have their pros and cons.
Construction in many parts of the country is still forging ahead, with new developments in particular a popular option for those relocating or wishing to find something more suitable than their current rental home.
If you’re weighing up your next property investment, pre-construction investments may be worth considering.
Pros:
- No negotiations with previous property owners/maintenance work to be completed.
- You have a say in almost every aspect of your investment (if single dwelling) – from property location, position of build, layout, view and design inclusions etc.
- Developers are often motivated to sell properties on the plan; and this may work in your favour.
- Maintenance and repairs in the first few years are often minimal, and many of these are likely to be covered under builder’s warranty.
- Re-sale value is often good.
Cons:
- Projects/developments, especially if purchased in early stages, can take some time to come to fruition. Delays can happen, which can result in delays for you to see return on your investment.
- New developments, while built to capture and build a specific community, may not yet have established facilities.
- While properties may have the benefit of modern features, they may also lack the ‘character’ of older properties.
Your RE/MAX team can assist with information about potential investment opportunities in your area.
