Reasons to consider buying a newly-built investment property
Wed Oct 19 00:00:00 AEDT 2016
While some things get better with age, a place to live isn’t always one of them. A rich history can add appeal, as can some design and construction styles, but the age of the property is something to seriously think about when you’re looking to buy.
Choice Home Loans explains why you should consider a new build when purchasing an investment property.
Aging properties can have unforeseen costs associated with them, particularly if you don’t invest in a building and pest inspection prior to purchase. Over time you might find that maintenance fees or repair bills for damaged parts of the structure or general wear and tear of the property are far higher than in newly built properties.
Newly built properties carry a building warranty of between five and 10 years, depending on what state or territory your property is in. Appliances such as ovens, dishwashers and heating systems will also have their manufacturer’s warranty. If you do happen to run into issues with your new purchase, these warranties might be able to help. No warranty applies when buying an existing dwelling.
Appealing to tenants
New fixtures and appliances, such as those in bathrooms and kitchens, can be a huge drawcard for tenants, as can modern heating and air-conditioning systems. These things should be considered when you come to negotiate the weekly rent. Newer appliances might draw a higher price, especially if your property is in a sought-after location.
Don’t overlook the potential depreciation and tax benefits associated with purchasing a newly built investment property. Benefits are often at their greatest when a property is brand new (or bought ‘off the plan’ prior to the property being built), not to mention the fact that many costs associated with an investment property are partially tax deductible.
If a new property does fit your financial and investment strategy, the benefits may be considerable. When you’re ready to purchase an investment property, new or existing, Choice Home Loans’ qualified mortgage brokers can provide you with home loan options that that may fit your circumstances.
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