Whether you are building your dream home or are interested in investing in property, the journey ahead of you is an exciting and rewarding one. However, there are many differences, as well as similarities, between the two and they should be dealt with and planned for taking these factors into consideration.
Are You Building Your Own Home?
Building a primary residence that you want to live in is going to include lots of decisions about the lifestyle you want to live, how your family interact with one another and what needs you will have now and into the future. This may include creating a list of needs and wants that you would like within the house design, and what location you prefer. Do you want to be under an hour’s commute to work, or close to the kids schools? Do you need 4 bedrooms, an alfresco or a home office? These are all important factors when building a primary residence.
Why Build Your Own Home?
Purchasing your own home is a great way to secure your families future. No more moving from rental to rental, your lifestyle is secure. Apart from security, purchasing your own home may mean that you can use the equity in your home to start a property investment portfolio.
Having trouble saving for a deposit? Many state governments have created incentives that can help first home buyers buy a home sooner. With the First Home Owners Grant sitting between $10,000 – $20,000, Stamp Duty concessions for different states and even the federal government’s announcement of the Super Saver Scheme, building your home may be your next step.
How Can iBuildNew Help?
Building your own home can be a time consuming process. From finding the correct finance and design or house and land package, to talking to builders and developers, there are a lot of different parts to the journey. iBuildNew is here to simplify that process, taking a brief on what you need from your new home and matching you with only the right builders or developers who can help you. Call us on 1800 184 284 or book a call now.
Are You Investing in Property?
On the other hand, if you are investing in property, there are slightly different considerations. This decision is more about the numbers and returns. What will the rental yield be? What location will be in high demand, close to public transport, to a business centre or in a great school location? When it comes to the design on the house itself, this will also be very different to the way you design your own home. Creating a house that has enough space for all types of groups moving in is important. Are there enough bedrooms and bathrooms or living spaces so people can have their own space as well as come together? Is there street parking or enough room to entertain? What little things may attract tenants more easily such as caesar stone benchtops and 900mm appliances? These may not necessarily be of interest to you, but may bring in a higher rental income. Why Invest in Property, and Especially in a House and Land Package?
Whether you are a seasoned property investor, just starting off your portfolio, or purchasing your first investment property before you purchase your own home there are a lot of benefits to investing in property. Ultimately, they all allow you to secure your future. You can diversify your investment portfolio, benefit from depreciation tax offsets to maximise rental returns, or even use the equity in your first investment to fund your second. There are huge rewards for those to start now.
Off-the-plan house and land packages are particularly attractive, particularly since the government’s budget announcements in May 2017. A new build house and land package is where you will get the highest tax deductions for depreciation on plant and equipment (or fixtures and fittings), compared to established properties where your write off is capped at 2.5% pa unless you are the original purchaser of an item in the home. With house and land package investments you only pay stamp duty on the land which is a huge saving over buying an established home or an apartment, and in most cases will save you $20,000 – $30,000. These benefits in turn drive superior rental yields, especially on an after tax basis where a house and land package will typically yield rental returns of 4-5% pa. And the best thing of all, being brand new they are backed by 6-7 structural warranties so there are no hidden surprises and are a renters dream, so very easy to let from day one.
How Can iBuildNew Help?
Having trouble understanding how to finance? Download our FREE guide today to get a comprehensive overview of what you should expect and prepare for. You can also call our expert team on 1800 184 284 or book a call now.
- We’ll ask the right questions to better understand your needs
- We’ll create a recommended shortlist ideally matched to you
- We’ll answer specific questions or concerns related to home building, land purchasing or financing