first_imgMortgage Choice CEO, John Flavell, said investors are trending away from new-builds in favour of established homes for a variety of reasons.A recent study by mortgage broker, Mortgage Choice, has revealed investors prefer older properties over new builds.The company’s 2017 Investor Survey found 76.9 per cent of Australians intend to buy or have bought an existing dwelling, compared to 23.1 per cent who bought a new build.“Our data shows an increasing proportion of investors are choosing to purchase an established dwelling rather than a new build,” Mortgage Choice chief executive officer John Flavell said. This is a slight rise on last year’s result which showed 79.7 per cent of investors preferred old, while in 2015 the percentage was 75.8 per centMore from newsMould, age, not enough to stop 17 bidders fighting for this home3 hours agoBuyers ‘crazy’ not to take govt freebies, says 28-yr-old investor3 hours ago“While only a small rise each year, this is a trend that I expect to see continue over the coming years,” Mr Flavell said.“I believe we will continue to see an increasing proportion of investors choosing established dwellings over new builds, and there are a couple of reasons for that,” he said.Mr Flavell said investor liked holdings where tenants could move in immediately.“Meanwhile, investors who purchase an off-the-plan property for example, may have to wait several years before they can access the property and, in turn, generate income from potential tenants,” he said.“Secondly, depending on the location and the condition of the home, existing properties can sometimes be more affordable and provide property investors with more room to negotiate on price.” Mr Flavell said the ability to renovate an existing home in order to raise the value had appeal as well.Other factors, such as the rising supply of new construction and the increased incidence of valuations coming in below contract prices, had scared off some buyers too, said Mr Flavell.last_img

Leave a Comment

Your email address will not be published. Required fields are marked *