On the newer side of the street

Modern apartments have had their share of problems, but they can be a better investment than their older counterparts

- DOMENIC NESCI

New and off-the-plan properties have deservedly built a bad reputation in recent years. This is due to the bad workmanship and terrible delivery of many projects.

During the property boom of 2018, Australians were developing about 200,000 properties a year – 50,000 above the average. This construction boom was influenced by an influx of foreign investors, particularly from China, looking to buy brand new property in Australia due to the laws and tax structures around investment, which were written in such a way that these investors were limited to buying new real estate.

This strong demand was great for the industry, because it meant there were ready buyers for almost all new developments that entered the market. However, many new and inexperienced developers, builders, tradespeople, planners, certifiers and engineers entered the market, and a few short years later their properties were showing major issues. This is when horror stories about defective apartment developments emerged, with buildings cracking, sinking and flooding and becoming unliveable.

It is important to note that this is not an industry-wide issue. Yes, there are some new builds that are not delivered to a high standard, but it is important not to allow the minority of new developments to ruin your perception of the majority.

Residential construction has been one of the economic pillars of Australia’s development as a country. All these old buildings you see around were once new, and the price you would pay for property in those buildings today is far higher than what the properties originally sold for.

Here I will take you through some of the pros and cons of buying new property, along with some tips on how to buy a new property and avoid many of the issues and problems that you have heard about.