New builds and off-the-plan properties have a bit of a reputation problem. You've probably heard the horror stories. Those stories are real, and we're not going to pretend they aren't. But the problem was never new builds — it was bad new builds, bought without proper guidance, in the wrong locations, from the wrong developers.
1. Depreciation Is a Game Changer
When you buy a brand new property, the ATO allows you to claim depreciation on the building itself and all the fixtures and fittings inside it. On a new build, these deductions can add up to thousands of dollars per year, significantly reducing your taxable income.
2. Nothing to Fix, Nothing to Worry About
When you buy new, everything is under builder's warranty. No surprise plumbing bills. No aging roof to replace. For investors especially, this means lower maintenance costs in the early years — which means more of your rental income stays where it belongs.
3. Tenants Love New
New properties rent faster, attract better quality tenants, and command higher rents than comparable older stock. In a market where rental demand is strong, a new build gives you a genuine edge.
"The problem was never new builds — it was bad new builds, bought without proper guidance, in the wrong locations."
4. Off-The-Plan Lets You Lock In Today's Price
When you buy off-the-plan, you exchange contracts and lock in a purchase price today — but you don't settle until the property is built. If the market moves in that time, you've captured that growth before you've even handed over the full purchase price.
5. Government Incentives Still Favour New Builds
First home buyer grants, stamp duty concessions, and state government incentives are almost universally skewed towards new builds. The financial benefit can sometimes be tens of thousands of dollars.
Watch Out For: Oversupplied Markets
There are pockets within certain cities where apartment supply has outpaced demand. But here's what the headline writers get wrong: they paint entire suburbs with the same brush. Within any given postcode, there's a meaningful difference between a 300-unit tower built to a price point and a boutique development of 20 well-designed residences two streets away. Knowing the difference is exactly the kind of insight a good buyer's agent earns their fee on.
Watch Out For: Developer Reputation
Not all developers are equal. Before we recommend any new build to a Switch Property client, we look hard at the developer's history. Who have they built for before? Did those projects deliver? This is non-negotiable due diligence.
Watch Out For: Valuations Coming In Short
You buy at a certain price, the market softens during construction, and when the property settles the bank's valuation comes in below what you agreed to pay. It's a real risk that proper due diligence and market selection can significantly reduce.
— The Switch Property Team