Buying a home is a significant commitment that could be challenging and expensive, depending on your financial condition. A new house and land package by Hotondo Homes can be a wise choice for first-time homeowners or those wishing to invest in their ideal home without spending a fortune. Customers can use it to pay a predetermined price to buy houses and land.
Hotondo Homes’ house and land packages offer many of the advantages of custom construction without many of the labour-intensive procedures. Additionally, newly built residences in prime locations have the advantage of luring tenants of a better calibre. The following are some factors that make house and land packages excellent investments:
- Stamp duty savings: Purchase stamp duty represents significant savings for house and land combinations. You will avoid paying around $8,000 in stamp duty on a typical $450,000 house and land bundle. This is because, since the house hasn’t been constructed yet, stamp duty is only assessed on the value of the land component while a new house is being built, not the house and land components.
- Choose your block and design: When you buy a house and land package, you have the option of selecting the best block and customising the house design to meet both your investment goals and budget while also making it very appealing to tenants. In this approach, you can carefully consider the kind of tenant you want, and then create a house and land package just for them.
- Brand new homes attract better tenants: Landlords want to entice reputable, long-term tenants to their properties. With all of the modern conveniences, new homes have the advantage of being incredibly appealing to tenants and providing a place that they will love and want to stay in for many years. Another advantage of new homes is their ability to command higher rents, which will increase the return on your investment.
- Depreciation and tax benefits: In a new home, the advantages of depreciation are substantial and shouldn’t be disregarded. Depreciable assets in a new home, such as the building’s construction cost and its fixtures and fittings, can be written off as tax deductions. A new investment home that costs, let’s say, $250,000 with $30,000 in furnishings and fittings will generate almost $16,000 in annual deductions when combined with benefits from claiming for the payment of rates, interest, and rental management.
- No maintenance: Finally, the fact that new homes require little to no maintenance is still another fantastic advantage. Here in Queensland, a builder’s guarantee that might frequently last 5 years will cover the structure, fasteners, and fixtures. When you consider that one of the major expenses of an investment property is maintenance and upkeep, this is very considerable. A brand-new house will cost less to maintain and hold its value better. Additionally, trustworthy home builders are using better construction methods and higher-quality building materials than ever before, resulting in well-built homes that are also remarkably easy to maintain.
House and land packages are fantastic investment choices for several reasons. Firstly, they offer considerable stamp duty savings. Secondly, you get to choose your block and design, and thirdly, they attract better tenants. Finally, they offer depreciation and tax benefits and require little to no maintenance.
Thanks to hotondo.com.au for consulting.