As an investor, the decision to secure your financial future with an investment property is a big one. Making the right choice and doing it in a manner that lets you get back to your life, is important. We know that everyone is busy and constantly jumping from task to task. Therefore, we have made the newly built property investment process straightforward, and simpler than you might expect.
Why Should You Invest in a House and Land Package Today?
There are a range of impressive benefits of purchasing an off-the-plan house and land package for your next investment. Many of our investor clients are heard stating “this is a no brainer, why would anyone now buy an apartment or established home given all of these advantages”, here’s why:
- With property prices across the country continuing to rise, many investors cannot afford to include property within their portfolio. However with house and land packages available from $400,000 in Melbourne and Brisbane it becomes highly affordable for most, even those with a relatively small cash deposit if they have reasonable equity in their home.
- With off-the-plan house and land packages available from $400,000 and generally 30%+ below the median house price in surrounding suburbs, the head room for capital growth is significant. The fact is the majority of the population growth in our major cities is from immigration, and guess where most of these new Australians choose to live with their families…the outer suburbs where house and land packages are available. With the expectation of continued population growth across Melbourne, Sydney and Brisbane for the next 2-3 decades, this is what will fuel ongoing capital growth in these areas.
- While some investors are prepared to settle for 1-2% rental yields, with house and land packages you can achieve anywhere up to 6% rental returns, both on a gross and net basis! As an investor you will be truly cash flow positive with a house and land package, meaning even after your loan repayments you will be accumulating positive cash flow to your account each month.
- You will also save on stamp duty with a house and land package investment as stamp duty is only payable on the land component. Once upon a time off-the-plan apartments offered an investor full stamp duty exemptions, but since 1 July 2017 the government has changed the rules are you are now subject to $30-40K in stamp duty depending on the value of the apartment, making a house and land package the superior choice.
- Even more important to the savvy investor, since the May 2017 Federal Budget announcement the depreciation legislation has been changed in favour of new builds. For those buying an established home as their investment property, any investment after May will only attract 2.5% depreciation on the fixtures and fittings of the home. With a new build house and land package however, as you are deemed to be the original purchaser of the fixtures and fittings, you can still claim depreciation at the rate of 25-30% depending on the item, offering you an additional $15-20K in annual deductions over an established home. Something your accountant will love come tax time!
5 Reasons Why You Should Purchase an Investment Property Through iBuildNew?
1. Fixed Prices and Turn-Key:
Building a new home can usually lead to many additional costs that you have not budgeted for, like landscaping, fencing, driveways, etc. When you are building a home to live in managing these type of items yourself may be manageable, but as an investor you simply don’t have time. Having a fixed cost also allows you to know what to expect and how much you need to save and borrow. Don’t be stuck wondering how much an investment property will cost you when you can deal in only fixed price investments.
2. Building Inspections and Depreciation Schedule:
Confidence is the vital to any investment decision, and by providing you with a complimentary independent building inspection, you will know that the builder is creating a house of great quality, built to Australian standards and code. iBuildNew provide a 5 stage building inspections through our trusted partner Jim’s Building Inspections, absolutely free of charge. And to help come tax time, we also provide a full depreciation schedule from JLL saving you up to $1,000.
3. Exclusive Access:
Have access to house and land packages that are not available to the general public, through iBuildNew. Leveraging the relationships we have with a wide range of wholesale builders, we gain access to some of the best investment opportunities available across the country.
4. Expert Research:
The key to any investment decision is thoughtful research. We know that you are busy and we have done the research for you, providing you with the best options and insight to make the decision that is best for you. We apply our 12 box model to all investment recommendations, which we take you through in detail before any decision is made.
5. We Work For You:
Don’t struggle speaking to lots of different builders and developers, trying to secure your own land and comparing different products and offers. We can help you find the right property for your investment needs, making it simple and straightforward, avoiding the need to go into ballots for land and waste many weekends researching the market.
Off-the-plan house and land package investments can be tremendously rewarding for investors, and it’s where the more sophisticated property investors are starting to focus their efforts. We have made investing in a house and land package simple and straightforward for your investment needs. Speak to us about your needs and investment objective now by calling 1800 184 284 or book a call with one of our new home advisors.
Let us do the legwork for you.
- 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
Zoe Langenberg
Zoe is passionate about coffee and interior design. You can find her most weekends exploring an art gallery or devouring a good book.
1800 184 284
