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We had a website but lost a domain name. It was not big deal because it didn't have good rankings. Right now domain name doesn't belong to anyone.

So will it be any difference if we buy old domain back and start SEO optimization or we buy a new domain? I ask because Google needs some time before new domains get indexed. But the old domain is switched off right now and I'm not sure if that would also need some time.

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If the old domain didn't have good SEO you are starting from scratch. Whether you start from scratch on that domain or another, you are still starting from scratch.

It will only make a difference if your customers knew your old domain and you therefore lose old visitors.

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  • Domain name age is a huge factor. If the domain name has not actually disappeared, I doubt that it has, and can be had without a complete drop from registration, then I would consider it. Rank is not the key. Rank can be changed. However, domain age cannot be made up for quickly... or at all. If the OP likes the domain name, then I suggest trying to get it. But do not get carried away. Get it for cheap! Cheers!!
    – closetnoc
    Dec 22, 2016 at 4:01
  • I've managed some websites that had months of downtime before I took over. Bringing them back up, even on the same domain did not restore their original rankings. Domain age may be a factor, but not having a website for a long time seems to be just as big of a factor that can cancel out any benefit of domain age.
    – Stephen Ostermiller ♦
    Dec 22, 2016 at 11:23

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