Achieve all of this and more with your next investment property
By choosing to build rather than buy you'll:
Pay no stamp duty on the house saving you up to $20k
Claim Depreciation (can't do that on an existing property)
Claim capital works deductions (can't do that on an existing property)
Create up to $70,000 in Instant Equity by using our system of building for profit
Warrnambool has a rental shortage, vacancy rates are at an all time low!
Get the best tenants and the highest rent - who doesn't want to live in a brand new home?
Zero maintenance costs as everything is brand new.
Be unaffected by any possible changes to negative gearing (the possible changes allow negative gearing for newly built homes)
Not only are you making a great decision to build an investment property to secure your financial future, but you'll also be be part of a solution to a big problem facing Warrnambool at the moment. There's just not enough rentals! How about we create some?
Warrnambool property investment market takes a new twist
Att: PROPERTY INVESTORS
“Very minimal properties for rent”
“Rent prices a jump of 6.1 per cent on last year”
“Tenants living in rental properties that have sold have found it hard to find somewhere else to live”
“Open houses still attracting up to 20 prospective tenants”
-Quotes published in the Warrnambool Standard today the 17th May 2019.
These facts are upsetting to say the least.
Warrnambool has a big housing supply problem and we're enocuraging property investors to become part of the solution.
The government knows we need more housing to save our country from a homelessness epidemic and that’s why the government rewards those who build and create more housing by offering significant tax incentives.
So why aren't more people talking about this? I can only assume it’s because too few people know. If you'd like to know what the rewards are to those investors who create more housing, then keep reading.
When you buy an investment property at market value you’ll pay a massive wad of stamp duty on top of your purchase price putting you in a negative equity position from the start.
Buying an existing investment property doesn’t let you claim any capital works deductions or depreciation on your asset and ultimately you end up paying a load more for your investment than you ever needed to!
Or, you could choose the scenario that puts you in front from the start.
We've done it many times before ourselves... And you can do it too.
If you're interested in saving thousands in stamp duty, maximising your deductions at tax time, getting the best rental returns and creating instant equity it may be time to talk to your accountant about building your next investment property rather than buying.
Should you choose to build, here's what you might be able to achieve.
- Pay no stamp duty on the house saving you up to $20k
- Claim Depreciation (can't do that on an existing property)
- Claim capital works deductions (can't do that on an existing property)
- Create anywhere up to $50,000 in Instant Equity by using our system of building for profit
Warrnambool has a rental shortage, vacancy rates are at an all time low, building a new home can help you get the best tenants and the highest returns. You'll maximise deductions and have zero maintenence as everything will be brand new.
Not only will you be making a great decision to build rather than buy an investment property, but you'll also be part of a solution to a big problem facing Warrnambool at the moment.
There's just not enough rentals!
Want to know how to Create instant equity and maximise your rental returns? Get in touch for a chat.
Don't pay full Stamp Duty by buying an existing home. Learn how you can pay zero Stamp Duty on the house.
The government rewards investors who choose to build. You can claim capital works deductions and depreciation for up to 40 years which effects significant tax savings.
Rather than buy just any house, build an investment property that is optimised for maximum capital growth and rental yield.
The secret to successful residential property investing in Warrnambool
When you hear the words- ‘Save yourself the hassle of building’, what you’re really hearing is ‘want to pay around $50,000 more for your investment property than you need to?’
What you should know is that when following the right process, building saves dollars. Now we aren’t just talking a few dollars, we are talking a whole lot of dollars.
When you buy an existing home, you’ll pay a whole bunch of government stamp duty on top of the purchase price. Currently (depending on your circumstances and your intended use of the property) on a $400,000 home you’ll pay around $20,000 in stamp duty on top of the purchase price when you buy an existing home as an investment property.
When you build a home you only pay Stamp Duty on the price of the land which is minimal in comparison at around $4000 on a $150,000 block of land, again depending on your circumstances.
the tools to succeed
Know how to build for your target market.
You can choose to build an investment property that caters for any target market including First Home Owners, Singles, Couples, Retirees, Families, Upgraders or Down-sizers.
Knowing what market your targeting can help you decide what’s the best type of investment property to build. Doing some research and knowing what’s in demand is also a smart idea when defining the type of investment property you want to build.
For example, if you are building a property catering for the first home owners/couples/retirees or downsizers, you might choose to build a low maintenance 3 bedroom, 2 bathroom, double garage, 1 living area home on a small allotment. That type of property would attract the majority of people within these markets, both from a resell and rental perspective.
If you want to cater for families, you might choose a larger allotment to provide outdoor space, a 4th bedroom/study, an extra living area etc. This type of property would attract the majority of families with 2 or more children.
You may choose to build an upmarket property with all the bells and whistles, but you should be prepared to be a little more patient to find a buyer or a renter, simply because there is a smaller percentage of the market who can afford to buy/rent that type of property. They are out there for sure, there’s just not as many of them.
Building a house catering to the tastes of an ‘imaginary friend within this majority market’, rather than according to your own personal tastes requires discipline. Investors are more likely to stick within their budget than someone who is building a home to live in themselves. A good investor will be able to separate desire from need. But there is a fine line. Investors can be guilty of building a bare bones home which is ok in a high demand market where people don’t have a range of rental properties to choose from. But, should at any time the supply outweigh demand, you’ll want to make sure that you’ve got the type of property that tenants will line up for. You’ll want to have built the type of property that will fetch premium rent with equally premium tenants.