Investment Property House and Land
Often when people are considering an investment property they look towards existing homes or apartments, but the benefits of house and land packages should not be overlooked. Some very attractive features include increased deductible tax benefits, offsets available as well as significant stamp duty savings. New House and land packages in good locations have the added benefit of being very attractive to tenants and possibly attract higher caliber of tenant.
Stamp duty savings
The big saving for house and land packages is purchase stamp duty. On a typical house and land package of around $450,000, you will save around about $8,000 in stamp duty. This is because when you are building a new house you are only paying stamp duty on the value of the land component not the house and land components, as the home hasn’t been built yet.
Choose your design and location
When you purchase a house and land package you can choose the most suitable package to make it highly attractive to tenants as well as suiting your investment budget and goals. You can think of your ideal tenant or what is in high demand in your area and create a house and land package that would suit their needs.
New homes attract better tenants
As a landlord you want to attract high quality long-term tenants. New houses have the advantage of being incredibly attractive to tenants with modern conveniences and offer a place that tenants will love and want to stay in for many years. You will also have the added benefit of being able to charge premium rent to receive a higher return on your investment.
Depreciation and tax benefits
The benefits of depreciation are significant in a new home and are more favorable than buying an established property. In a new house tax deductions can be claimed for depreciable assets such as the construction cost of the building itself as well as its fixtures and fittings. A new investment home costing, say, $250,000 with $30,000 worth of fixtures and fittings will create approximate deductions totaling $16,000 per year together with benefits received from claiming for the payment of rates, interest and rental management. Note. Please discuss with your tax specialist.
New homes is that they have little or very low maintenance. Often the building, fixings and fittings will be covered by a builder’s guarantee, which can last 5 years. This is pretty significant when you consider that one of the main costs of an investment property is the maintenance and upkeep. A new home may have lower costs and retain its value for longer.
New House Realty use reputable builders with over 50 years’ experience and are using higher quality materials and better construction techniques than ever before meaning homes are well built and incredibly efficient to maintain.
If you thinking of an investment property … “We can make it Happen”