When searching for a smarter way to invest, countless people have turned to the world of real estate to help.
Purchasing homes, rental properties, or other buildings can yield great returns with the right strategy. However, there are often all sorts of difficulties and challenges which make this niche a difficult area in which to succeed.
Despite these challenges, there are a few additional areas within property investment which are more likely to yield better results. In fact, one of these areas is shifting your investment focus onto new construction with a land and house package deal.
Many people ask themselves “are land and house packages a good investment for me?” The answer to this question is almost always a resounding “yes” – for you, your family, and your future.
Below, learn just how wise of an investment this can be with 6 of the best reasons to opt for a land and house package.
THE 6 REASONS
1. You Have Little to No Upfront Maintenance or Repairs
Depending on your investment, with a new build, you can enjoy a lengthy period of time where maintenance is often fully covered under your Buying Contract. In many cases, your building and its related fittings and fixings will include a Builder’s Guarantee. Most standard Builder’s Guarantees offer this coverage for up to 5 years.
Also with new builds, reputable builders are using higher quality materials, combined with the latest technology. The result is a more efficient home, with lower running costs and upkeep expenses.
2. You Can Save Money on Stamp Duty Costs
Stamp duty is an expense that home purchasers have to endure during the purchasing process. But when you purchase a land and home package, you could stand to save thousands over a traditional home purchase. That’s because you’ll only be paying the duty on the land’s value since the house has not been constructed yet. This can help you save even more (which you could then use on the house’s down payment instead).
3. You Can Build Where You Have the Most Potential
If you intend to rent your investment property or resell it later, you have a lot more options at your disposal with a land and house package. You can research which areas have the most potential in terms of rentals, property value forecasts, and more. That way, you can opt to build your new property where you’ll get the most out of it in the long run.
4. You Can Get Higher Quality Tenants
If you plan on renting out your investment property, you want to attract high quality tenants who will pay their rent on time, treat the property with respect, and stay for years at a time. When you’re renting out a new construction, you are more likely to attract better tenants who will appreciate the new luxuries of your property.
This is a win-win situation for everyone involved. Tenants can enjoy all the latest amenities in a new home – encouraging them to stay in the unit for years at a time. And you can enjoy reliable tenants, with premium rental rates to enhance your ROI potential.
5. You Can Enjoy Tax Benefits from Depreciation and Other Elements
Depreciation is an important consideration within any property you own – even a new construction built from a house and land package deal. As the property owner, you will eventually have to invest in upkeep, maintenance, repairs, and other expenses after the Builder’s Guarantee expires. And depending on the maintenance, this could lead to some highly expensive repairs over the years.
The good news is that you can offset depreciation concerns with tax deductions related to construction, fixtures, fittings, and more. You can also deduct several other components within your taxes – creating a high number of rebates and incentives year-after-year.
6. You’re Investing in a Quality Life for Your Family
Finally, if you’ve secured a land and house package to build a new home for you and your family, there’s one more major investment point to mention. That point is the value you’re giving to your family by living in a beautiful home for years to come.
Think of it as a self-investment in terms of quality of life, and quality time. In the end, focusing on yourself and your family may provide the most important investment benefit of them all.
LAND AND HOUSE PACKAGES: A WISE INVESTMENT CHOICE
As you can see, investing in land and house packages can provide you with a wealth of benefits, savings, perks, and more. From tax savings to better tenant quality, these properties make it much easier to improve your returns for years to come. And even if you just plan to live in your property, you can enjoy many of these benefits by way of an investment in yourself and your family.