Is a House and Land package the best choice for your next investment?
With available land reducing, House and Land packages provide an affordable option for property investors and first home buyers alike to easily get a house within an up and coming area that will be attractive for tenants for many years to come. They also offer a range of other benefits including significant stamp duty savings and increased deductible tax benefits.
Here are the top reasons why House and Land packages make great investments:
1. The value for money
House and Land packages more often than not, provide significant value for money. The most popular type of House and Land package is usually a ready built ‘turnkey’ package. ‘Turnkey’ means that the home is ready for you or your tenants to move straight into with; a fully fitted kitchen, living areas, built-in appliances, light fixtures and fittings and everything else your home needs to move right into. Quoted as a single fixed price including the house and land, turnkey packages help reduce any extra costs or surprises during the building process ensuring that you know the expected costs up-front.
Not only are prices for House and Land packages normally clear and upfront, they offer extensive savings through stamp duty exemptions and tax benefits (more on this later) along with the added savings from having complete control over a brand-new home that has the benefits of customisation without the associated consultancy fees. In fact, house and land packages save investors an average of 14% compared with buying an existing home in the same area.
2. Ease of set-up, construction and moving in
With the vast majority of house and land packages, the process from start-to-finish is made as easy and stress-free as possible. Once you have met with the provider of your package and gone through the most suitable block, house design and customisations for your budget and needs, there isn’t much more to do except watch the property build get underway. One of the main benefits to this is it frees your time and energy up while giving you the peace of mind that your investment is in great hands. By knowing exactly how much your build will cost to complete and when you can expect your new investment to be ready to move into, House and Land packages help you to maximise your budget and goals as well as have tenants in the home as soon as construction is completed.
House and Land packages are now available in many up and coming areas outside of Sydney including Wollongong, Shellharbour and the Wollondilly regions, and with population growth and lower cost of living in these areas many people are choosing to move out of the major cities and enjoy a better quality of life with House & Land package that yield a high level of ROI as these regions grow.
3. Financial incentives
There are several very attractive financial incentives for investors to purchase House and Land packages including significant stamp duty savings and tax benefits.
As you are building a new house, you’ll only need to pay stamp duty on the value of the land component as the home is yet to be built. For example, this means that you could save approximately $8,000 on a $450,000 package alone.
Deprecation and tax benefits are also an important consideration. New home tax deductions can be claimed as depreciable assets including the cost of the build, its fixtures and fittings. You can also claim rate payments, interest and the cost of rental management.
4. Fewer maintenance costs
The great thing about building a new house is the lack of maintenance required for several years. Fixed priced ‘Turnkey’ packages usually have no hidden costs and have warranties covered by the builder’s guarantee on most fittings and fixtures. Considering one of the main costs of investment properties are maintenance and upkeep, this could be massive to your ROI. In addition, new homes use better materials and construction techniques and are usually adhering to a higher level of guidelines than in the past with an emphasis on energy efficiencies and ease of maintenance.
These are our top reasons why House and Land packages can be a great option for investment. Contact us If you’d like to talk to an expert to find the right package and we will be in contact shortly. You can also view our packages here:-