While there are many types of properties out there worth investing in, apartments, townhouses and established houses, most people shy away from the idea of buying an investment property brand new and having to start from scratch. But building a brand-new house can be a lot easier than you think if you do your homework and find a full turnkey house and land package.
A Turnkey House and Land Package is a must for investing in a brand-new home, this concept means when the home is completed and yourself or the tenant receives the keys you literally turn the key to a completely finished package. You personally get to come along for the ride during the building process and choose every wall colour, bench, carpet or tile, brick and all accessories and the home is essentially your masterpiece.
You can have as much or as little involvement as you want with building an investment property, most investors will choose a design from the builder and donâ€™t get emotionally involved but others make their own changes as one day they might wish to live in the home themselves. If you take a back seat in the process thatâ€™s fine as the builder looks after construction and the bank pays the builder at each stage, council approves the plans and certifiers, inspectors and bank valuerâ€™s make sure the house is built to specifications. Building supervisors will call you and send you updates weekly, so this opens the possibility of investing interstate where growth and rental markets might be higher than where you currently reside.
Finding a tenant for a brand-new House and Land package is easy, most people will love the thought of a brand-new home to make their own when looking for a rental property. They are willing to pay higher premium rent to have all the modern features that come with a new house. As well as not having to worry about putting on those gloves and scrubbing someone elseâ€™s mess before they move their own family in.
One of the biggest motivators for purchasing a new house verses old house is you only pay stamp duty on the land with a new build whereas stamp duty is paid for the total price when you purchase established.
Another plus in a new build as an investment would have to be all the shiny new items, this means no renovating expenses to get the place ready for a tenant and no maintenance cost as everything is under warranty.
As a new property, you can claim all expenses and depreciation on the building and contents in the first year, this will mean the tenant and taxman pay for your property and you still receive a positive cashflow outcome.
Chippendale and other surrounding suburbs are candidates...