When looking at investment properties, most buyers assume that an established house or apartment offer the cheapest and easiest option. On closer analysis however, when the hidden costs of extras are added in and the risks associated with older properties are factored in, the picture changes for investors.
Often, house and land packages are compared to owner-occupied homes where the home has been built and then a range of extras are added to suit the owner’s lifestyle. With a home and land package, one of the key advantages is that these extras come as standard inclusions. Once the costs of such items as interior furnishings, landscaping and ducted air-conditioning are added up, a house and land package often works out to be similar to buying an established property, however it will be new.
Another attractive feature of house and land packages relate to the deductable tax benefits, and offsets available to the investor. Correctly structured, the house and land package option will also save stamp duty on the deal, as the duty will only be levied on the value of the unimproved land rather than the total property, as would be the case with an established property.
Choosing a house and land package:
Walk through various display homes to compare designs and costs, along with workmanship and quality of materials;
Pay attention to the detail and finish of the home, such as painting, carpentry and tiling;
Find out if there are extra costs involved if you want to change particular aspects of the home;
Ensure all features, services and materials are listed in the contract, such as letterbox, flooring, driveway, landscaping etc.
House and land packages are ready-designed and matched to the right piece of land, with most of the designs in the surrounding area complementary to its architecture, adding long term resale value to your home. The homes are also brand new, so maintenance requirements are generally unnecessary for at least five years. This is particularly good news for investors who want to attract top tenants as soon as possible.