With our recent listings on the blocks of land in Suffolk Park and Ewingsdale, we have been answering questions about why a new build on a block of land is a great investment and how it can boost your long-term financial security.
1. Tax benefits
New homes have a significant advantage when it comes to tax time. Although it does depend on the exact situation, new builds typically offer significantly higher depreciation. In addition to this, investors can claim tax deductions for the cost of construction, new fittings and fixtures like curtains, blinds, floor coverings and appliances. At the end of the financial year, with the right accountant and a newly built rental, you’re likely to get a large tax return.
2. Higher rents
We all know that new home feeling — it’s alluring to homeowners and tenants alike.
We all know how nice it feels to have a new home and its alluring to not just homeowners. Renters like to live in new properties because they’re newer and shinier and often have thinks like heating and cooling. From an investor perspective, a new build would generate higher demand and it would be justifiable to ask for higher rent than an existing property.
When buying a property with the hopes of renting it out, location is key. At the moment, coastal locations are hotspots right now with tenants prioritising lifestyle. If you’re building in coastal areas, there’s also typically more opportunity for capital growth – especially if you get in early by buying into a new community. These coastal areas really appeal to families who tend to want to stay in a property for a few years. At the end of the day, the location you choose will depend on your investment strategy.
4. Warranty and maintenance
Another great reason to buy new is “peace of mind” as investors have the benefit of not having maintenance in the short term because everything is brand new. In the instance of settlement occurring and the hot water bursting or the roof needing to get replaced, you are in a much better position if you build. This is because if something does go wrong, you have the security of a warranty period, so you’re covered.
5. Quality properties
Buying an older home can be a gamble. You don’t know who built it, whether the builder was trustworthy and if quality materials were used. The best part of buying new is that you choose the developer and builder yourself.