Brand New vs. Used
Merit of Brand New
Brand new equipment installed
Easy to get a tenant
Possible to set rent high due to premium value
Needs no repairs
Demerit of Brand New
Expensive price = Low return
Loan interest and other costs occur during uncollected rent period until property is completed
High necessity to bring rent down for the second time tenant to a room
Need to collect tenants from scratch
Merit of Used
Inexpensive price = High return
Possible to get rental income right off the bat if there are tenants
Possible to purchase after confirmation of a building
Possible to save on tax because of many depreciation costs per year
Demerit of Used
Harder to get a bank loan than brand new
Difficult to get tenants and to maintain the building
If you don’t want to spend too much time and work, a brand new building is a way to go.
High yield used properties are recommended to those who focus on monthly income gain.
To those who focus on capital gain, used properties are also recommended since the price is cheaper.