New build vs period property: which investment is best for you?

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Are you looking to invest in your first property but unsure where to start? When investing in the buy-to-let market, it’s essential to choose a property that is worthwhile and will offer you generous returns. The type of property you pick is also a contributing factor, as selecting the right one will enable you to success. Two of the most popular investment types are new builds and period properties, which both have positive qualities as well as some downfalls. To ensure you choose the right one, you should take a look at this guide to help you understand which one works for you.

New build

A new-build is a property that has never been lived in as it is completely brand new. You can choose to invest in a new build that is ready to rent out or an off-plan property which is still under construction. When choosing this type of property you need to consider the advantages and disadvantages.

Pros

There are several benefits of investing in new-build properties, although the most prominent advantage is the lack of maintenance. As the property is new you will not face any repair or maintenance costs since everything will be fresh and new. You may also avoid furnishing costs, as some new-builds come pre-furnished. Property experts RW Invest are a great example, as they offer investors luxury furnished apartments which do not require any redecorating. This again allows landlords to avoid any renovation costs, especially as their properties are designed to cater to a wide range of tenants with the lavish yet neutral decor.

Cons

While there are plenty of advantages to investing in new-builds, there are also some downsides. As a new-build property investor must be patient regarding profits, especially with off-plan properties. This is because they will have to wait until the property is finished and tenants are in the property before they can expect to receive any rental returns. However, once completion is reached, you will begin earning substantial profits, which are definitely worth the wait.

Period property

A period property is a building that has been around for many years. Popular period properties include Georgian, Victorian and Edwardian style homes which have plenty of character. These types of properties offer both pros and cons.

Pros

Period properties have a significant amount of charm associated with them, due to features like sash windows in Georgian properties, high ceilings in Victorian homes and mock-Tudor cladding in Edwardian real-estate. These unique features are popular with a wide range of tenants who are looking for somewhere different to live.

Cons

As a period property is dated, investors tend to avoid this type of home, since sometimes it can become much more costly than it deserves. It also may not be as energy efficient as a new-build, as modern properties tend to have up to date facilities, unlike older models. This will result in high energy bills because items such as boilers or heating systems are not as efficient. You could consider replacing these, however, this will also be a costly process, but definitely worth it in order to cater to a wide range of tenants.

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