Looking to purchase an investment home that you can rent out for monthly profits? If so, and if you’re looking at an older build, you may want to reconsider. Fixed price house and land packages allow investors to purchase new homes in Melbourne’s growth Northern and Western suburbs to maximise their investment opportunities. Furthermore, there are numerous benefits to choosing a house and land package from a team of professional home builders as opposed to an existing property.
For starters, consider the tax benefits that come along with new homes. Due to your investment being a new construction property, you’ll be able to claim deductions on things like construction expenses and fixtures. Furthermore, when you purchase a new home, you can obtain a depreciation report from a local surveyor to determine how much you can claim in depreciation each year—and you’ll likely be surprised at the amount!
From a maintenance and upkeep standpoint, a brand new home is going to give you, the owner, a much easier time than an older home. Because everything will be brand new (and still under warranty), you won’t have to worry about many of the maintenance and repair costs that can come along with keeping up an older home for your tenants, such as water damage from roof leaks, unexpected appliance replacement, and plumbing issues. As a result, you can maximise your profits and reduce the amount of time and money you have to spend maintaining the property.
If you have something specific in mind when it comes to your investment property, you may have a hard time finding it in an existing home. To achieve what you want, then, you may end up needing extensive and costly renovations on the house you purchase, which instantly impacts your bottom line. When you purchase a house and land package, you have the opportunity to customise your new home from the ground up to suit your needs (and your future tenants’ anticipated needs). This way, you can get exactly what you want without the need for renovations (which can lead to surprise added costs) later on.
Stamp Duty Savings
Last but not least, don’t forget about the stamp duty savings investors can enjoy when they opt for new homes over existing builds. Specifically, when you purchase new construction, you only have to pay stamp duty on the land itself. For many investors, this equates to an instant saving of anywhere from $5,000 to $10,000! This is no small sum of money when you’re looking to purchase an investment property, and money saved is money earned, so it’s certainly worth considering—especially for first-time investors.
These are just a few of the most compelling reasons to consider fixed price house and land packages for your Melbourne real estate investment portfolio. If you’re interested in finding out more about the additional benefits of new homes for investors or would like to explore the house and land options available to you, contact our experienced and knowledgeable team here at Mimosa Homes today.