When investing in real estate, people often tend to focus more on the ready-to-occupy houses or apartments. There is no doubt that these become valuable assets once purchased. But, those looking to make a smart property investment should also look into house and land packages. Compared to pre-built houses, these packages offer distinct advantages to the investor.
Real estate experts discuss the following benefits
Stamp duty savings
According to huntclub.com.au, house and land packages help buyers save a huge amount of money on stamp duty charges. This is because you are charged only for the land, not for the house and land together, as the house is yet to be built.
Greater Control for Customisation
You have the freedom to customise your home. When you design your home according to your specifications, you are actually making it more attractive to prospective tenants in case you are hoping to rent it out later. You could even custom-design the house with a particular ideal tenant in mind.
Focusing on the house’s design will increase your chances of attracting good tenants. In addition, since the home is new, you can expect more potential tenants to visit your property. If they really take a liking to your tailor-made house, they might just become one of your long-time renters. Also, with a new house, you can charge a premium rent and expect better returns on investment.
Two other important benefits of house and land packages include the following:
• You can claim tax benefits for all the depreciable assets in the new house.
• There is nearly no maintenance required, as the house is new and may be covered under the builder’s 5-year guarantee.
With increased rental income, lower maintenance expenditures and better returns on investment assured, house and land packages have become a popular way to invest in real estate today.