Let’s talk about the benefits of a house and land packages. More often than not, people look towards existing homes or apartments when looking at investment properties, but the benefits of house and land packages should not be overlooked.
Some of its awesome benefits include increased deductible tax benefits, significant stamp duty savings, and offsets available. Also, new homes in well-located areas also have the added advantage of being very attractive to tenants, attracting a higher calibre of owners and renters.
Brand new homes can attract better tenants. As a landlord, you want to attract long-term and high-quality tenants to your property. New homes have the innate advantage of being incredibly attractive to tenants with modern conveniences and provide a place that tenants will love and want to be in for extended periods. New homes can also charge premium rent so you will gain higher returns for your investment.
Choose a block and design. When you purchase a house and land package, you can choose the most suitable location and customize the house design to make it more attractive to tenants as well as suiting your budget and goals. With this, you can really focus about the ideal tenant you’d like and customize the house and land package that would suit them.
No maintenance. Another great benefit of new homes is that they have minimal maintenance. Often the structure, fittings, and fixings will be covered by the builder’s guarantee, which can often last 5 years in Queensland. This is very significant when you consider that maintenance and upkeep one are some of the main costs of an investment property. A new home will have lower costs and can retain its value for longer.
Stamp duty savings. One of the biggest advantages of house and land packages is purchase stamp duty. A typical house and land package of around $450,000 can save you around $8,000 in stamp duty. This is because when you’re building a new house you are only paying stamp duty on the land component and not the house and lot land components since the home hasn’t been built yet.
Depreciation and tax benefits. New homes get the advantage of depreciation. In a new home, tax deductions can be claimed for depreciable assets such as the construction cost of the building and even its fittings and fixtures. An investment home costing $250,000 with $30,000 worth of fittings and fixtures can create deductions totalling to about $16,000 annually together with benefits you’ll receive from claiming for the payment of interests, rates, and rental management.
Where to start looking
Seek out reputable builders of new homes. Most developers today use higher quality materials as well as better construction techniques than ever before, which means home are well-built and incredibly easy to maintain. Sydney house and land packages are popular nowadays with new and beautiful communities, so be sure to check it out. There are also a lot of developments in other cities so be on the lookout for those.
That’s it. These are just some of the top reasons why you should consider a house and land package as an investment. Now the choice is yours.