Buying a New Vs an Established Apartment: The Pros And Cons

Compare new and established apartments with our analysis on their unique benefits and considerations to help you decide if either property type is right for your preferences.

From first-time buyers to those looking to downsize, apartment living can be an attractive option for all kinds of property seekers. However, a common dilemma when going down this path is whether to opt for a new apartment or an established one.

Needless to say, both new and established apartments come with their own set of advantages and disadvantages. Having a good understanding of the pros and cons of each option can help you make a decision that’s best for your lifestyle, budget and future plans.

Pros of Buying A New Apartment

Offering attractive contemporary designs and convenient modern amenities, new apartments can certainly be appealing. Here are some of the benefits of buying a new apartment:

  • Modern design: Brand new apartments often boast the latest in cutting-edge design trends, as well as modern facilities such as gyms, pools, and more advanced security.
  • Lower maintenance costs: A new apartment will usually require less maintenance in the short term compared to an established one, resulting in less financial outlay.
  • Energy efficiency: New buildings are generally built to meet current environmental standards, meaning better energy efficiency and potentially lower utility bills.
  • Incentives and warranties: When buying a new apartment off the plan, you may be eligible for developer incentives, government grants, or warranties on the construction.

Cons of Buying A New Apartment

While a new apartment can offer a range of advantages, there are some downsides to be aware of:

  • Higher price: New apartments will often come with a premium price tag compared to established properties.
  • Risk of lower capital growth: As new apartments don’t stay ‘new’ forever, the property may depreciate in value initially.
  • Smaller space: To maximise profits, developers might offer new apartments that are smaller in size compared to older ones.
  • Construction delays: When buying a new apartment off the plan, construction delays are a potential and frustrating risk.

Pros of Buying An Established Apartment

Established apartments, on the other hand, offer their own unique benefits that can be appealing to certain types of buyers:

  • Potentially larger space: It’s often the case that older apartments offer more spacious floor plans compared to new apartments.
  • Ability to research: With a proven track record, an established apartment block provides a history you can research – from body corporate management to how well the building has been maintained.
  • Opportunity to add value: With an older apartment, you often have scope to renovate and add value in order to increase market value.

Cons of Buying An Established Apartment

Of course, established apartments also come with potential drawbacks you need to consider:

  • Higher maintenance costs: Older buildings may need more frequent and costly maintenance.
  • Outdated facilities: Compared to new apartments, older properties are likely to have outdated or less luxurious amenities.
  • Energy inefficiency: Being older, established apartments may not meet current environmental standards, resulting in higher energy costs.
  • Strata complexities: Older buildings can sometimes have more complex strata issues or disputes, which can be challenging to navigate.

New vs Established Apartments: Making The Right Choice

Trying to decide between buying a new and an established apartment? Consider the following factors:

  • Your budget and financial goals: Think carefully about the purchase price of a new vs established apartment, as well as ongoing costs.
  • Your lifestyle preferences: Do you value modern amenities or are you keen to find a property with charm and character? Is the amount of space a critical factor?
  • Research and due diligence: Whether old or new, it’s crucial to conduct thorough research into the property, its history, the developer, and the location. 
  • Professional advice: Seeking information from the experts can help you navigate your property purchase journey and make the best decision for your situation.

Deciding between a new and an established apartment will depend on a wide range of factors, such as your financial circumstances, personal preferences, and long-term goals. 

By considering all the pros and cons involved, you can make a well-informed choice and secure an ideal apartment that ticks all your boxes.

Keen to learn more about the home-buying process? Check out our other articles and stay in the know about all things home loans.

This article is intended to provide general information only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Please consider seeking financial advice before making any decision based on this information.

Unloan is a division of Commonwealth Bank of Australia.

Applications are subject to credit approval; satisfactory security and you must have a minimum 20% equity in the property. Minimum loan amount $10,000, maximum loan amount $10,000,000.

Unloan offers a 0.01% per annum discount on the Unloan Live-In rate or Unloan Invest rate upon settlement. On each anniversary of your loan’s settlement date (or the day prior to the anniversary of your loan’s settlement date if your loan settled on 29th February and it is a leap year) the margin discount will increase by a further 0.01% per annum up to a maximum discount of 0.30% per annum. Unloan may withdraw this discount at any time. The discount is applied for each loan you have with Unloan.

There are no fees from Unloan. However, there are some mandatory Government costs depending on your state when switching your home loan. For convenience, Unloan adds this amount to the loan balance on settlement.

* Other third-party fees may apply. Government charges may apply. Your other lender may charge an exit fee when refinancing.

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