I did a little research using seopenalty.com, and according to them all new domains start out with a level 10 penalty! (The highest Google penalty without being banned) Am I seeing this right or does every domain now start out with a high penalty? Maybe it's a quirk with seopenalty that lists domains with few indexed pages as having a high penalty (another quirk is they list all domains without indexed pages as being "banned"). I started researching this after seeing that my new subdomains were showing up with high penalties immediately after being indexed. Does anyone have any insight on this?
But after a short period of time Google puts them in a "sandbox" for a period from3 months to even 2 years. So, it's better to find and buy old domain.
I think seopenalty is just automatically listing all sites with a 0 pagerank as having a high penalty, and all sites with no indexed pages as being banned. It may be useful for any site with any sort of pagerank + indexed pages (pagerank + indexed pages likely being an oxymoron).