Everyone dreams of having the perfect home. One where you don’t have to renovate, to get close to what you really wanted in the first place.
Increasingly, people are looking to build or buy off the plan in order to get a home that is brand new and requires no work. This is especially so for working couples who simply do not have the time, skills or knowledge to renovate a home that may well need more than a coat of paint.
It’s a perfect solution for owner/occupiers as well as a new home is likely to attract more interest from potential tenants and will incur less expenses in terms of maintenance.
Depreciation benefits of building new
Building a new home also allows you to claim the full range of depreciation benefits on your tax return. If you buy a home that has previously been owned, you can no longer claim the depreciation on fixtures and fittings such as air-conditioning, dishwasher, carpets and blinds. On an average home that equates to approximately a $6,000 per year deduction on your tax return over the first 5 years of owning the investment property.
Designing with tenants in mind
Design is another good reason why it’s often better to build rather than buy a pre-owned home. Increasingly, tenants are seeking a home that makes effective use of space, offers well thought out storage solutions, has a number of living areas and of course enough bedrooms to suit.
Importantly, clever design will also ensure the property has maximum appeal when you eventually choose to sell.
Benefits for First Home Buyers
For first home buyers there are also financial benefits from building from scratch:
First Home Owners Grant– the amount you can apply for is currently $15,000. To be eligible:
- You must be an Australian citizen or permanent resident (or applying with someone who is).
- You or your spouse must not have previously owned property in Australia.
- You must be at least 18 years of age.
- You must be buying or building a brand-new home, valued under $750,000.
You save on Stamp Duty– when you build, provided you have separate house and land contracts, you only pay stamp duty on the cost of the land. If you were to buy an existing house, you will pay stamp duty on the agreed purchase price. This could save you thousands of dollars.
You can specify your own colours, finishes and design– all of this is true to a certain point. If you are buying a townhouse that is one of a number, there may be certain walls and rooms you can change but you will not be able to completely redesign it. The developer can explain what can be modified and if certain changes (such as upgrading the appliances) will affect the quoted price.
New homes are energy-efficient– and that saves you money in the long run.
Engage professionals who will make the process easy
While building is not for everyone, as it can be incredibly stressful, if you partner with people experienced in the delivery of new homes, much of the angst can be removed for you.
Contributed by Triple Zero Property
The team at Triple Zero Property work with client’s every day to deliver new homes in a range of areas that have been specifically chosen because of the likelihood they will deliver better than average returns over time.
Triple Zero Property have helped many investors and owner/occupiers add to or start a property portfolio. Get in touch for a no obligation conversation on how we can help you make the right property choices.