As leading Sydney buyers agents, a question we are often asked is this, “If we are going to buy an apartment in Sydney, should we buy a new apartment or an older apartment?”
There is no clear answer to this and we set out the advantages and disadvantages of both old and new Sydney apartments below.
1. Brand New and Off The Plan
- Brand new apartments that have never been lived in can seem very attractive and appealing.
- Often there is an option to select which particular fixtures, fittings and finishes you want in the apartment.
- Capital allowance for tax depreciation will appeal to Sydney investors.
- In our experience, brand new and off the plan properties in Sydney are frequently overpriced when compared to existing Sydney stock.
- Generally we find that the build quality of newer apartment blocks in Sydney is inferior to older stock. There are frequently building defects that need to be sorted out during the builder’s warranty period and very often the problems extend beyond that.
- Often brand new or off the plan apartment blocks in Sydney are higher in density than older stock. There are often facilities and amenities such as lifts, swimming pools, gyms and saunas and these add to the strata levies. All these factors impact upon the resale and capital growth of the property.
2. 1960s – 1980s Red brick/ Blond Brick Apartment Blocks
- Depending upon the location in Sydney, these types of properties often show a solid history of capital growth.
- In our experience, these Sydney unit blocks have often been well built and as a result have fewer ongoing maintenance issues.
- These blocks are usually lower in density than newer Sydney unit blocks.
- There are usually no extra facilities and amenities such as lifts, swimming pools, gyms and saunas. This means that the strata levies are usually lower.
- In our opinion, one of the biggest issues with these types of Sydney unit blocks is that they were built before the current fire and health and safety standards. If the owners corporations have not brought the blocks up to the current standards, owners will be faced with potentially high special levies to install items such as complying balustrade and safety railings, fire safety doors and toughened glass for example.
- There is no capital allowance for tax depreciation for investors on residential properties built before 1985.
- Aesthetically, some people find these Sydney apartment blocks ugly to look at. Also, as the apartments are older, they often require varying degrees of internal renovation.
- The reality is that no Sydney property is perfect but some will be far more suitable for your needs than others. If you would like to discuss your requirements and preferences in more detail, please do not hesitate to call Buyers Domain property buyers agents today.