When people consider an investment property, they often look towards existing homes or apartments, but the benefits of house and land packages should be noticed. Some desirable features include increased deductible tax benefits, offsets available, and significant stamp duty savings. Additionally, newly built residences in convenient locations have the advantage of luring tenants of a higher standard.
Buying a house and land package offers numerous benefits of bespoke building while removing most labor-intensive tasks.
Here are the top reasons why house and land packages make great investments:
Stamp duty savings
The payment of stamp duty is a crucial cost-saving measure for house and land packages. You will avoid paying around $8,000 stamp duty on a typical $450,000 house and land bundle. This is because since a new home hasn’t been constructed, stamp duty is only assessed on the value of the land component when purchasing a new home rather than both the land and the house.
Choose your block and design.
When you purchase a house and land packages, you can choose the most suitable block and customize the house design to make it highly attractive to tenants and suit your investment budget and goals. This way, you can think about the ideal tenant you would like and then customize a house and land package that would suit them.
Brand new homes attract better tenants.
You want to draw in reputable, long-term tenants as a landlord. With all of the modern comforts, new homes have the advantage of offering a place that tenants will adore and want to stay in for many years. New homes also have the benefit of charging premium rent so that you will gain higher returns for your investment.
Depreciation and tax benefits
Benefits from depreciation are substantial in new homes and should be noted. Depreciable assets in a new home, such as the building’s construction cost and fixtures and fittings, can be written off as tax deductions. When combined with benefits from claiming the payment of rates, interest, and rental management, approximate deductions for a new investment home with, say, a $250,000 price tag and $30,000 in fixtures and fittings equal $16,000 annually.
Finally, the fact that new homes require little to no maintenance is still another fantastic advantage. A builder’s guarantee will frequently cover the structure, fixings, and furnishings. This is crucial because maintenance and upkeep are the direct costs associated with investment properties. A brand-new house will cost less to maintain and hold its value better. Additionally, trustworthy new house builders are using better building methods and materials than ever before, resulting in well-built homes that are also remarkably easy to maintain.
So there are the top five reasons why house and land packages deserve a second look as an investment choice. Of course, when considering any investment, you must also look at the location, surrounding infrastructure, employment, and growth of the region to ensure that it will make an excellent long-term investment to achieve your investment goals.