In this article, we’re going to focus on buying purely as an investment – buying a buy-to-let. Is buying an older, more established property better than a new build? Well, it depends on the location, nearby amenities, proximity to employment opportunities and so on, all of which are linked to a property’s true value. It also depends on the type of tenant you are targeting, and the type of property, among many other factors.
The question we’ve posed is a question without a clear answer, but if you’re a potential investor, you’ll need to weigh up the incentives and disincentives of investing in new over old – or old over new.
You’re paying for the developer as well as the property
Premium price investment
Lack the potential to add value to maximise capital growth
Less floor area than an old property with a comparable number of rooms
However, we could easily argue that for portfolio landlords, a combination of both old and new properties is best. With new properties you’ll minimise the amount of tax you need to pay, while older properties can be renovated to enhance their rental and market value. What’s more important is the location and prospect for growth, and properties in areas like Westminster, whether new or old, will always present investors with the possibility of strong rental yields and capital growth.
If you’re looking to invest in a buy-to-let property in Westminster, Pimlico, Belgravia or within the SW1 area, get in touch with us today. We have experience of advising investors on the purchase of both new and period properties