Article by Davina Deluao. This article was origionally published on ibuildnew.com.au and has be reproduced with permission here.
When considering an investment property, there are a number of key features to take note when it comes to a house and land package. However, people may often consider the alternative option of purchasing existing homes or apartments as being a quicker solution. Here are a few of the benefits of investing in both the house and land together that may be overlooked for an easier route:
By choosing a house and land package, you are able to collect a big saving from stamp duty. This is because you would be required to only pay for stamp duty on the value of the land component as the new home is yet to be constructed. As a result, the typical house and land package amounting to around $450,000 can allow you to save about $8,000 in stamp duty.
The freedom to personalise your new home is a great opportunity that house and land packages can provide. Through this, you are able to pick the most suitable block and adjust the house design according to your preferences. There is the chance to customise the whole property to be targeted towards your ideal tenants or to what’s best suited to your own investment budget.
Brand new homes are able to attract high-quality tenants who are willing to invest in your property for a long period of time. As you are able to provide a new home that brings along modern conveniences and up-to-date resources, you would be able to charge tenants with premium rent allowing a higher return of your investment.
A significant benefit that house and land packages are able to bring to the table include being able to claim new home tax deductions. These claims involve depreciable assets such as the construction cost as well as the fixtures and fittings. This would mean a new investment home worth about $250,000 with $30,000 worth of fixtures will create deductions reaching $16,000 per year. There are also additional claims that can be made for payment rates, interest and rental management.
A bonus benefit for a house and land deal is that it requires very little maintenance to worry about. As it is a new property, the builders are able to provide a secure guarantee to cover the building and what would need fixing for a couple of years, with some possibly lasting up to 5 years. This can positively impact your investment considering that the upkeep of the property is one of the main costs. To add, builders are able to utilise higher quality materials and apply improved construction techniques for a new home, resulting in a well-built and efficient outcome.
Need help getting started? Whether you are looking for apartments, townhouses or house and land packages, working closely with an iBuyNew property consultant, who understands the market, will help you find something suitable that’s tailored to your needs and requirements. Get in touch today on 1300 123 463.
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