What are the Benefits of a House and Land Package?
If you are planning on investing in real estate or if you are in the market to purchase a new home, there are some benefits to the purchase of a house and land package. Many people who want to invest in real estate start to look at already built homes or apartment buildings, but a house and land package does have some major benefits. There are some great features including available offsets and higher tax deductions. There are also some serious savings to be had in stamp duties. When you decide to buy land and build a home in an area that is gaining popularity there is the extra benefit of the home being extremely attractive to tenants. This will increase your chances of getting a higher quality tenant for the long term in your new home. Here are some of the main benefits of house and land packages:
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Tax Deductions
A new home will begin to depreciate as it is being built in that there are construction costs for the building and the fixtures and fittings that are inside of the home. The tax deductions for constructing a new home can be significant and the interest and rental management costs can be factored into those tax deductions if you plan to rent out the home once construction has been finalized.
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Savings on Stamp Duty
One of the biggest areas of saving for a land and house package is the stamp duty. The average land and house package cost of $450,000 can save you about $8,000 in stamp duty. The reason is that as you are having the new home built you pay stamp duty on the land portion only, and not the house itself because it is under construction.
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Low Maintenance
A newly built home will have low or very little maintenance. The fittings, fixtures and building itself are usually covered under warranty by the house builder which can last as long as five years. This is a significant cost savings when you think about the general cost of properties for upkeep and for maintenance. New homes will have you incurring less costs and the home will keep value for a longer period of time. Builders with good reputations do not cut corners and use better quality building materials along with better techniques for construction. These homes are not only built well but are also simple to maintain. A reputable builder will not risk his or her good name to save a few dollars on the build because their good name and top service will ensure that they are busy into the future building more good homes.
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You Choose Design and Location
Purchasing a house and land package means that you have the ability to choose the area where the home is built along with being able to customize the interior and exterior. You can design the home to suit your personal tastes or you can ensure it will appeal to a wide range of people, particularly good tenants. You can choose a design that will suit your budget and your goals for the long term.
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New Builds Attract High Quality Tenants
When you are a landlord you want the highest quality tenants that will stay for a longer period of time at your property. Building a new home will attract the right kind of tenant to the property because those types of tenants are looking for all of the most modern conveniences and are willing to pay more money to get a good quality home to rent. Since the home is new you can charge a higher rent than you would normally charge which will ensure that you only get good tenants. When you have your tenants sign a lease it will ensure that they prepare to stay for the long term and the higher rent price tag will provide you with a higher return on your investment.
If you have been wondering if buying a house and land package is worth it, this may help you to make a decision. You need to consider many factors including the location and the surrounding infrastructure. Is the home close to businesses where tenants may work? Is the region growing sufficiently to make it a desirable area to reside in? Your purchase will mean a solid long term investment that can help you to achieve your future goals. You should ensure you have the funds together before you start looking for a land and house package whether that means through financing or through investments. Being ready to pull the trigger when the appropriate package shows up will put you out ahead of the pack.
Daily Bulletin
