The benefits are exclusive to new homes, which is influencing a market shift in favour of well-designed house and land packages. Besides the enjoyment and marketability of quality home design, there are some significant financial opportunities to these packages, beginning with low outlays and high positive cashflow potential.
Stamp duty is a killer. It’s one of the most insidious and stressful charges in purchasing property, and it’s only likely to increase as time goes by if recent tax changes are anything to go by.
Stamp duty on purchase is calculated on both the house and the land for existing properties, and depending on where the property is, located, it could be anywhere from $15,000 to $25,000 on a $500,000 home.
One of the biggest benefits of purchasing a house and land package is in slashing this cost. When you’re buying a package, you’re only paying stamp duty on the land, because the house hasn’t been built yet. – means you’re only paying $5,000 to $10,000 when you buy. That’s a big saving on the cost of your investment an enormous reduction on your upfront costs, which is why new house and land packages are a particularly attractive option for buyers who are new to the market or taking the investment plunge for the first time.
You can choose your block and design your home
One of the biggest benefits of investing in house and land packages is not being restricted by the structure or layout of the property. Not only can you select the most suitable block, you can customise your designs to suit the area and attract the tenants you want living in your property.
With house and land packages, you don’t need to settle for what’s on offer: you can create an investment property that mirrors your vision in terms of style and personality, as well as one that functions to serve your target demographic. As an example, if the tenants you want to attract are larger families, you have the option to build a home with four or more bedrooms and multiple bathrooms. In essence, you’re designing a home to the specifications of your market, instead of trying to re-work an established building into something it can’t be—and saving yourself a lot of time and heartache.
Can find better tenants
Finding the right tenant can be one of the deciding factors on whether or not your investment is a successful one. Having a good tenant means your cashflow will be stable, and your investment property will be well taken care of so you’re not liable for the cost of extra maintenance or repairs. It’s also important for your property not to be sitting vacant for months on end—and house and land packages are a great way to reduce that risk.
Investing in a house and land package pretty much guarantees that you’ll end up with a brand new home that’s attractive to good tenants. New homes are very liveable with all their modern conveniences, and even when they’re located in areas that haven’t yet reached their high capital growth potential, good tenants will still want to stay just because of the comfort they offer. Good tenants will also be willing to pay higher rental rates for the privilege of enjoying a spacious and aesthetically pleasing living space, which means you’ll end up with a better return on your investment.
You can claim extra tax benefits and depreciation
You can’t beat house and land packages in terms of investment tax breaks. Because they’re new homes, you can claim all sorts of tax deductions for depreciable assets, from the construction costs to the fixtures and fittings.
On a new home, a Quantity Surveyor can supply a detailed report that is valid for 40 years and shows the amount of depreciation that can be claimed each year. If you hire a good accountant to utilise this depreciation schedule for you, you’ll be shocked at how much money you can save—and you’ll be glad you invested in a house and land package rather than an existing property.
Maintenance is minimal
No matter where you buy, if you’re buying an existing residential property, there’s bound to be teething problems. Over time, every property shows wear and tear or becomes outdated in style, and most of the time you’ll be up for spending at least a few thousand dollars to bring your latest acquisition up to standard.
This is a pitfall that you can avoid when you invest in a house and land packages. New homes are built according to much more stringent standards than builders were bound by in the past, and all reputable builders use high-quality construction materials, fittings and fixtures to deliver flawless finishes on their work. They’re also built to last, which means you won’t need to pay out a lot in terms of repairs or maintenance over the long term.
You get a better quality property
Among the many other benefits, investment in a house and land package is also one of the safest investment options. New homes are always covered by a builder’s guarantees. The building, fittings and fixtures are covered under the guarantee.
There’s really no substitute for investing in house and land packages, particularly if your goal is a high positive cashflow. But to make sure you’ve got the best chance of taking advantage of these benefits, you need the right help. Property Queensland are turnkey home specialists, with access to the most reputable builders and property investment opportunities in Queensland. Contact us anytime for more information, and we’ll be happy to help get you started on your way towards a profitable property investment future.