Cam McLellan & Allister Lewison discuss the pros and cons of buying new versus established properties for investment purposes. The key takeaways include:

Why People Prefer Established Properties

1. Visual Appeal – Buyers are drawn to what they can see, such as a well-maintained house with a nice garden.
2. Emotional Connection – Buyers feel comfortable with the ability to physically inspect and envision themselves in the home.
3. Fear of Construction Issues – Concerns about builder reliability, project delays, and unexpected costs deter some buyers from choosing new builds.

Why New Builds Are a Better Investment

1. Lower Maintenance Costs – New homes require fewer repairs, whereas older homes often have unexpected expenses within months of purchase.
2. Higher Rental Yield – New properties tend to attract tenants faster and command higher rental income.
3. Stamp Duty Savings – Buyers only pay stamp duty on the land value, making upfront costs lower.
4. Depreciation Benefits – Tax advantages from depreciating fixtures and fittings help investors reduce taxable income and offset holding costs.
5. Cash Flow Control – With new builds, costs are more predictable, reducing financial strain on investors.

Avoiding Overcapitalisation

• Investors should avoid building excessively large homes that won’t yield proportional increases in rent or resale value.
• The optimal property size and design for a given area is crucial for maximising returns.
• OpenCorp applies data-driven methods to ensure clients don’t overspend on unnecessary features.

Lessons from Experience

• Cam shares a personal anecdote about a past investment mistake involving a poorly planned development that led to unnecessary expenses.
• Learning from such experiences has allowed OpenCorp to refine their investment strategies, ensuring clients make smarter financial decisions.

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