Easy Choice: House & Land Package or Established Property?
There are many advantages in investing in a house and land package, rather than an older, established property.
Here are a few of them.
Stamp duty is a big consideration when you buy a property. When you buy an existing property, you pay stamp duty on the total purchase price. With a house and land package, you only pay stamp duty on the land component.
With a house and land package, you also get a new, up-to-date house with all the latest features. If you have chosen your package astutely, your investment property will also be in a growing area. This means that your property will increase in value as well as giving you a rental income.
A large portion of a new property’s depreciation is written off in the first 5 years. This means that you get the best possible tax deductions which makes the property even more affordable for you. If you have a mortgage, you will be able to reduce your mortgage more quickly.
With an existing property, you almost inevitably run into unforseen problems – renovation, maintenance, equipment breaking down, perhaps even termites. You virtually remove these concerns with a house and land package. For example, a new house and land package covers you for a 6-month maintenance period, appliance warranties and a 6-year builder’s warranty.
Want more information on investing in house and land packages? Talk to one of our client managers.