What should you buy? (Part 2) New Vs Old with James Rankin – BONUS SERIES Ep. 5

In part 2 of the four part series on What should you buy? Mike is joined by James Rankin, property advisor with Elephant Advisory in Melbourne. Here Mike and James delve into the ongoing debate – should you buy a bright shiny new property or are you better off investing in one that’s already established?

 

Those modern inner city apartment buildings with their sleek finishes and top of the range appliances can be hard to resist, but are they really the best bang for your buck? How do you know if the developer will deliver what’s in the brochure?

 

If the purpose of investing is to maximize the capital return, maybe you’re better off sticking with an older style property that’s tried and tested.

 

Drawing on years of combined experience, Mike and James talk us though the pros and cons of buying in a new development compared to an already established property, and James shares his top tips for both scenarios. This episode is a must-listen for anyone on the property investing journey.

 

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In part 2 of the four part series on What should you buy? Mike is joined by James Rankin, property advisor with Elephant Advisory in Melbourne. Here Mike and James delve into the ongoing debate – should you buy a bright shiny new property or are you better off investing in one that’s already established? Drawing on years of combined experience, Mike and James talk us though the pros and cons of buying in a new development compared to an already established property.

• The primary driver of purchasing property

 

• The key criteria to identifying good development opportunities

 

• What to look out for in a growth property

 

• The land to asset ratio

 

• The hidden costs of new properties

 

• What to look out for in established properties

 

• James’ top tips for buying – old or new

“It will always come back to the client’s situation and budget – budget is the biggest driver as to where we would purchase “ James 1:34

 

“The display suite is just the artist impression essentially, it’s not actually what’s going to be built, so you want to see after the fact”  James 5:35

 

“It’s not necessarily the land content, you could have 100 acres 500km away from the CBD and it doesn’t really have much value because there’s no need for it, there’s no scarcity value there“ James 7:03

 

“It’s the capital gains you’re buying it for, you’re not buying it for a tax incentive, you’re buying it for capital growth and the long term hold“ James 14:05

 

Links mentioned

 

https://gearedforgrowth.com.au/podcasts/episode-110-interview-with-james-rankin/

 

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