When you buy a new property you would certainly expect to have fewer maintenance issues than with an older property.

But, how much you are willing to pay for this benefit? Invariably you will pay a premium for buying a brand new property compared with an equivalent ‘second hand’ property in the same area.

When you are buy older properties, you are dealing with individual owners who probably bought the property many years prior. They are likely to be making a profit on their original investment and are often more negotiable as to price and terms. If you spot any defects to the property, these can help reduce your purchase price considerably.

My experience has been that the cost of repairs to older properties is not nearly as great as some people may imagine and in most cases does not warrant the extra investment for a new property. I find I can obtain more properties for the same investment (therefore more tenants and more cash flow) than if I invest in new properties.

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