What are the technical difference between buying ‘New’ & ‘Established’ Houses?

Often the house you buy to live in, in the suburb you choose is a very personal and emotional decision based on how you feel about where you are going to live. We understand. It needs to feel right and you are going to live in it every day


Because the objectives are different, or at least they should be, the criteria should be different: you will be doing this for specific reasons.
Typically the reasons include some combination of:
  • ‘Fundamentally I know that having an investment property is a good idea’
  • ‘I have realised and my Financial planner has told me, that I cannot earn or save enough money to retire on’
  • ‘I am paying the standard PAYG tax and my accountant has told me that I can save circa $10k a year in tax, that could help the numbers in an Investment Property and may even positively gear it’
  • ‘I know that property values go up, typically doubling every 10 years, so if I buy soon,then in 10 years I can expect to have EQUITY EQUAL TO THE PURCHASE VALUE and that’s a big deal: I could never save that much money in the same time frame!


Start by listing what is most important for you: Why are you considering doing this? Your answers are important. List them. This will help you enormously at the time that you have gathered loads of information and you’re starting to get confused.
Then get a trusted accredited person to provide you FACTS
  • FACT 1: When you buy an investment property you pay sales tax on the first contract When you buy an investment property you pay sales tax on the first contract.
    If you buy a block of land then build you save = (Sales tax) x (build price)!
  • FACT 2: When you buy a new property (only), the depreciation schedule allows you to save circa $10k tax every year.
    Naturally this depends on the purchase price and your financial circumstances
  • FACT 3: New houses come with warranties on the structure, brand new everything and guarantees on all the products in the building
    Minimum 7 year structural build warranty, 90 day defect warranty
  • FACT 4: It is statistically likely that things will go wrong with a house that is older
  • FACT 5: You will typically be able to buy a brand new House & Land Package for a much lower price than buying a house near you. Entry point into the market is important. Lower priced investment properties may be more manageable initially.