If you’re an investor, choosing the right investment property is essential. So, why not build one and reap the extra rewards? There are many options out there to suit a variety of budgets and property investment goals, whether it be a turnkey townhouse or a fixed-price house & land package.
Carry on reading to discover 5 reasons investing in a new build could be the right strategy for your long-term financial goals!
Tax benefits
Some of the biggest upsides to building new for investors are tax related. Depending on the circumstances, new builds typically offer significantly higher depreciation, with investors able to claim a deduction for the cost of the build over 40 years, whereas those that buy established can only claim the remaining years.
In addition, investors can also claim tax deductions for the cost of construction, new fittings and fixtures like curtains, blinds, floor coverings and appliances. Not to mention the ongoing maintenance of the property.
So, come the end of the financial year, with the right accountant and a brand-new rental, you’ll likely have a healthy tax return.
Increased rental income
We all know that new home feeling — it’s alluring to homeowners and tenants alike. It stands to reason then that with a new build, you may achieve higher rental returns, attract better tenants, and enjoy lower vacancy rates.
After all, not only are new properties shiny and clean, but they also have all the mod-cons – think heating, cooling, up-to-date appliances etc.
Because of this, from an investor perspective, a new build will generally command higher rent on average than an existing property.
Future proofing
An increasingly popular investment strategy is buying a block of land with a future title date in a new masterplanned community. Often, these communities are located in burgeoning growth corridors, close to desirable amenities like schools, transport, shops, freeways etc.
These amenities are hugely important in terms of attracting tenants but will also contribute to the saleability of the property. Additionally, because of the high demand in these growing suburbs, you’ll often find future infrastructure and investment on the horizon that will add to a suburb’s appeal.
If you know that you are going to buy somewhere that’s going to have a train station coming up soon or a new shopping centre or school, you can often get into that community at a better price than an established suburb where you are buying post-infrastructure.
Choosing to buy in a new community, like Ortus, can also be a smart strategy as you can secure vacant land today but settle on it in the future. The advantage is that you have a clear timeline and in a lot of instances it gives you 12 months or more to continue saving for the actual build.
Another popular investment option is locking in a fixed house & land package or turnkey townhome, so if prices increase over the next 12 months, you’re locked in at today’s prices. This is a particularly good idea when the property market is turbulent.
Peace of mind
Another great reason to buy new is the peace of mind that comes from builder warranties and structural guarantees! With a new build, you’ll have the security of knowing that if something goes wrong, you’re covered for a set period.
Also in the short term, investors won’t have to deal with maintenance costs, and tenants won’t have to worry about something breaking a week after moving in. A win, win!
Ensuring the highest quality
Buying an established home can be a gamble. You don’t know who built it, whether the builder was trustworthy and if quality materials were used.
One of the other benefits of buying new is that you choose the developer and builder yourself. This means you do your own research and can choose someone reliable.
If building sounds like the right path to start your investment portfolio, contact our Sales Team on 0499 940 120 to discuss available house & land packages and turnkey townhomes at Ortus, or enquire online now!