Although it may not seem like the most obvious choice and be very stressful, building an investment property will be a life-changing decision instead of investing in an established property. It requires careful consideration and preparation, but when you build that brand new home, with brand new shiny fittings and fixtures that are suitable for a modern family, it screams tenant appeal. We have provided a few points that highlight what can be consistently gained for buyers who prefer to build.
Although building an investment property from scratch may seem tedious at first, you are able to provide yourself with the room to conduct some research and liaise with real estate agents to properly understand the market as well as what is appealing for consumers. In addition, you can also make sure that your place includes the latest upgrades and trendy features that are sought after. It is helpful to ensure that the property is reaching its full potential and best suited to the demographics of the area. If you build the property right, it ensures the great rental yield that you’ll be after.
The construction of your future investment property is a fulfilling stage where you are able to see the plans and blueprints come to life. It can be even more satisfying as you are able to take a hands-on approach when customising the place according to your specifications. If you prefer to have more bedrooms to accommodate for a larger family or decide to build an investment property for dual occupancy, you have the creative control to do so without the lengthy process of having to rebuild all over again. With an established property, it is quite costly to modify the area without affecting the entire home.
A new home that is built from the ground up is more likely to have a higher energy efficiency standard that is a win-win for the environment and for your bank account. The home may be architecturally designed to prioritise natural ventilation and solar panels that can make a difference for your ongoing savings. There will also be fewer maintenance issues over the years in comparison to an established property. However, if problems do arise, it will most likely be covered by the warranty rather than out of your own pocket.
Building an investment property is also a smart way to strengthen your portfolio. When building an investment property, you have a blank slate that you can set up to personally reflect what you want and with the goal of welcoming potential opportunities. When a property is newly built, you get to depreciate the cost of that build over a number of years. You also get to depreciate the internal fixtures and fittings as everything will be brand new – resulting in you being able to claim maximum depreciation for those items. In the long run, your return on investment could result in a positively geared property.
Need help getting started? iBuyNew will point you in the right direction! Whether you are looking for apartments, townhouses or house and land packages, working closely with an iBuyNew property consultant, who understands the market, will help you find something suitable that’s tailored to your needs and requirements. Get in touch with them on 1300 123 463.