Investing

Can I buy a retirement property with my KiwiSaver funds? Once you qualify for New Zealand Superannuation (currently at the age of 65), you also become eligible to withdraw fu...
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Should I be looking to invest in a new or existing home?

New homes are generally clean, fresh, modern and energy efficient.  Older homes are more established so any building problems are known, and they tend to be in areas with more services and facilities nearby.  There are advantages and disadvantages associated with each choice.   Here are some points to consider:

Buying an old home
  • Older properties are often cheaper than new ones, but this is not always the case.  House prices will largely depend upon the home location and condition.
  • Older homes sometimes have charming period features that modern homes don't have.  These features include higher ceilings, unique architectural features and quality New Zealand native timber floors.
  • Older properties may need upgrading of their heating and cooling systems, electrical wiring, plumbing and roofing.  Sometimes these improvements can lead to good capital gains, so the expenses are offset against resale values.
Building a new house
  • New homes are designed to suit modern lifestyles so will appeal to a wider range of tenants (and some owners).
  • There can be additional tax benefits from purchasing new properties, including the ability to claim depreciation.  Consult a taxation specialist or other financial specialist to discuss your individual situation.
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