4 Benefits of Investing in New vs Established Properties

When comparing real estate investment options, the choice to build new or buy existing is one of the first considerations for investors.

Whether you're looking to buy your first investment property or add to your portfolio, here’s what you need to know about the benefits of investing in new vs old or established properties. 

Investment options for new properties

• House and land packages - The block of land and house are bundled together in a single purchase. The builder has already determined the plot of land and the design of the home. 

• Custom-built homes - Working with a building designer or architect to create a property with a customised design.
• Off-the-plan purchases - Buying a property or unit that has yet to be built based on its plan and building specifications. Off-the-plan purchases enable investors to secure a purchase early in the development, often at a lower price.
• Display homes - Investors can purchase a property used for display purposes from the builder.

Benefits of choosing a new property for investment

1. Higher rental rates

New properties attract higher rental rates as they are newly built, feature modern designs, and appeal to tenants.

2. Lower maintenance costs

New fixtures and fittings in an investment property are less likely to need repairs, saving on the associated costs. In Queensland, new homes are also covered by the Queensland Building and Construction Commission (QBCC) home warranty, which lasts for 6 years and 6 months, and covers a wide range of structural issues and defects. This warranty provides additional protection against the financial cost of repairs and maintenance issues.

3. Long-term capital growth

New properties built in rapidly developing regions have a high likelihood of achieving capital growth as the area continues to develop. For example, the median price of houses in the Townsville region has surged by 39.51% over the past two years (Real Estate Investar, 2025).

4. Tax advantages

Investors can claim depreciation on a new investment property for the full period of 40 years. Depreciation claims are made based on the diminishing value of the property and applied as a deduction on the amount of income that is subject to tax. Investors can also claim depreciation on the fixtures of the new property, such as air conditioning units and carpeting, lowering tax payable.

Investment options for established properties

An established property is already built, usually within a well-developed residential area. Established properties can include:

• Standalone houses
• Semi-detached houses
• Duplexes
• Apartments
• Townshouses
• Acreage properties

Benefits of choosing an established property for investment

Older properties are often in established neighbourhoods that are well-serviced by amenities and infrastructure.

1. Ready to rent

An established property will be immediately ready for rent, allowing investors to start receiving returns on the investment sooner.

2. Consistent rental demand

Properties located in established residential areas are more likely to see consistent demand from tenants who are attracted to easy access to local amenities and overall living convenience.

3. Historical market data

Established properties are often located in markets that have a long history of real estate investment performance data. Investors can use this data to make better-informed decisions about the property in terms of rental performance and capital growth.

4. Add value with upgrades

Investors have the option to add value to an existing property with a renovation. Upgrading the home’s fixtures and layout can raise a property’s rental appeal and market value.

Comparing New vs Established Properties For Investment

Investors who are looking at high-growth corridors, especially in regional areas, will find more investment opportunities for new properties. If you are looking to invest in Townsville, Cairns, or Mackay, Builder Direct offers a wide range of house and land packages to suit all budgets and preferences. Our house and land packages for investment are carefully selected based on local market insights and real estate data, offering long-term returns for investors.