Property Investment: Why we LOVE new builds in 2024!

February 20, 2024

There’s nothing like the smell of brand new!


You know the one – fresh and clean like a new car, couch, bag…

Or most importantly, a new HOME.

As much as we love the smell of a new home, that’s not the only reason they’re so great. New homes have some great benefits for property investors, whether you’re completely new to the market, or looking to take the next step to grow your portfolio.

Before we jump into why we love brand new so much, let’s get one thing straight. A quality investment of a new home relies on finding the right piece of property, in the right location. It’s not about buying around the corner or choosing a place that your ‘expert’ friend suggested – it’s about finding what’s right for YOU.

Location is all about combining the right amount of knowledge and market-backed research, with an understanding of your unique goals, financial situation and long-term objectives.

It might mean buying in a place you’ve never visited before, maybe a new estate, or a regional town. At InvestHer, our dedicated research team means that we’re able to find and recommend the right property for your unique goals. With an in depth understanding of trends, economic indicators, and most importantly, what people actually WANT, we’ve got your back.

So, regardless of whether it’s a brand new block, or a rebuild on an old property, it’s safe to say that we love recommending this method of property investment in 2024.

Still not sure why? Let’s chat about it.
 
  1. Adding Equity

    Although it’s not the be all and end all when it comes to property investment, adding instant equity to your purchase can be a great kickstart to your investment.Building a new house on a block creates instant equity. We’ve had some amazing client results over the last couple of months, with a number of valuations coming back at over 20% in equity gain within 18 months, that’s $100K, even $200K in growth.

    Building this kind of equity in the short term is not only great for your confidence, but it also provides you with some great footing to continue growing your portfolio, as you can harness the value to make another purchase.
 
  1. No Maintenance Issues

    If you’ve ever rented, you’d be well and truly aware of the problems that can occur with the upkeep and maintenance of older places. From leaky taps to cracks in walls, the older the place, the more hassles for both the renter and the landlord. At the end of the day, as much as we love some character, no one wants that!That’s not to say that existing homes can’t be great options. However, with a new home, you can trust the build and the quality
 
  • Tenants

    Back to the new home smell – freshly painted walls, new furniture, clean carpets and flooring, if you ask us, it’s a dream!If you’re anything like me, you LOVE new things. And we’re not the only ones – it’s one of the key reasons why the demand for new homes is so high – we thrive off the idea of having new things. Put it this way, we can be as mundane as we want in talking about tenants, rental yields and profit, but it’s the people who live in your house that make your dreams and plans come to life. We all want a safe and comfortable place to live – which is why new homes can be SO great.

    So, rather than putting the numbers first, put people first, and everything will follow!

    For you as an investor, this means a couple of things.

    The first, is that you know you have security in providing something that people want – you own a property that’s in DEMAND.

    The second thing, going back to that innate love that we all have for all things new, is the idea that people are willing to pay more to live in a new home. As a potential tenant, newness can feel like the perfect amount of security, safety and comfort.

    So, as a property investor, a new home is a win-win situation, your tenants will love where they live, and your financial goals will be taken care of!
     
  • Tax Depreciation

    Did you know there are different tax implications for newly-built homes?When looking at how you can claim parts of your property investment back on tax, a new home can be your best friend.Of course, with anything tax related, be sure to reach out to your trusty accountant, as they’ll be able to tell you everything you need to know.

    The ATO has guidelines for the effective life of products and objects, usually pertaining to things like cars, or computers. BUT, this concept is also applicable to your home. Anything from appliances and light fittings, to bins, have a practical life associated with them, whereby their reasonable lifespan is estimated, and annual depreciation is calculated accordingly.

    You can also claim depreciation on the capital costs of construction. When building the house, the ATO accounts for 40 years of reasonable use, and can therefore be calculated to depreciate over that time. Ultimately, this allows you to claim back the costs of building, which wouldn’t be possible if you purchased an existing home.

    So, at the end of the day, keep in mind the tax benefits of having a new build – it’s definitely worth making the most of!

    As much as we love the smell and feel of a new place, it’s not the only reason why we love suggesting it for our clients too.

At investHer, we’re all about creating property investment solutions for women who want to take charge of their financial future! Regardless of whether you and your partner want to take the next step, or you’re jumping into property by yourself, we’ve got your back.

Interested in chatting more? Feel free to give us a call on 0455 223 865, or get in contact HERE – we’d love to chat!

Enquiry Form