Should investors be looking at building a new home?
Tuesday, 12 July 2016 12:00 AM
Property investors around Australia are in a constant battle with one another to get to the best options first. This makes for a very competitive environment that is driving the prices of homes up more and more around the country.
It's making building a new home even more attractive to owner-occupiers, as they only have to buy land on which to construct. However, investors can put themselves in an advantageous position by building a home as well. Buying a plot of land doesn't have to be a stressful process, and if you get something in the right area, you'll have no trouble finding tenants for your brand-new home.
What other advantages do you get with a new investment building?
Getting exactly what you want
One of the problems with looking around the existing homes market for an investment property to add to a portfolio is that your choices are limited. You can only really buy something that fits your bill to an extent, but it's unlikely that you stumble across the perfect property, at the right price, at the right time.
If you take building a home into your own hands, however, you get to decide on the layout of your house, and what is included. This means you don't have to settle for a place that isn't quite right, but "will do for now".
As a busy investor, there's already plenty on your plate as it is. You aren't going to want to buy a home just to have to renovate to make it inhabitable.
"The importance of home renovations activity is often underestimated - it accounted for about 35 per cent of total residential construction during 2015," said Housing Industry Association (HIA) Senior Economist Shane Garrett in a June 16 media release.
If you don't want to be caught out with making your newly purchased property meet your standards, why not buy a new home design from G.J. Gardner Homes?
Keeping pace with a changing Australia
If you've built a property from scratch, yours will be the hottest vacant ticket in town.
A separate HIA report, the Population and Residential Building Hotspots research from June 2016, shows that there were 317,083 additions to the population of Australia over the 2014-15 financial year, and over the past 12 months, only 221,000 new homes were approved for construction.
At that rate, there will be large proportions of the population looking for a home, and if you've built a property from scratch, yours will be the hottest vacant ticket in town. Well, not vacant for too long!
If you want to discuss more about the advantages of building a new investment property from one of our many home designs, talk to the G.J. Gardner Homes team today.