New Construction vs Old what appreciates better long term?

[Jorge Martínez]

Hi, I am actively looking and putting offers for my first rental property, I just saw a townhome that I like from the 70's that needs some rehab, and a few blocks from it there is new development offering same type of units (a bit bigger) 10% more expensive with delivery lead times of 6 months. My strategy is long term appreciation with breakeven cashflow (for now), so the question is what do you guys think is a better investment long term?  Thanks 

Jorge

[Jake Andronico]

@Jorge Martínez

100% of homes break. It's not "if" but "when". 

If the new builds are larger and you do not need to do any work, that would be the option I'd choose personally. 

If they're 10% more expensive, is that after renovation cost or before? If the renovation cost makes the total purchase creep up very close to the new build, I think it's a no brainer. 

If it's from 1974 in 30 years it'll be 80 years old. In 30 years the new build will be 30 years old. 

Others may disagree completely, but just my thoughts :) 

Best of luck to you!