Stephen Thompson: Building a new home for your next investment could save you thousands

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Allworth Homes provides some insights into the benefits of building a new home for an investment property

These days, vacant land and new residential communities are popping up all over the place. Investors should take advantage of this by turning their investment property into a renters dream.

Stephen Thompson, managing director at Allworth Homes said, “Investors should consider building a new home for their next investment property. It is a lot easier than perceived and will give you many benefits along the way.

“Building a new home gives you a blank slate to work with, allowing you to choose all of the decorative features that you prefer. New means low maintenance and more energy efficient as a result of being constructed with the most up-to-date materials, saving you money in the long run.”

Allworth Homes outlines the reasons why investors should build their next home

               It’s not as hard as you think. Investors can have minimal hands-on involvement throughout the process and deal directly with the builder to purpose build what they want on their land.

               Choose the best block. Most builders will assess your block of land free of charge. Or select from land the builder may have already assessed as suitable

               Choose the design. Think about what your ideal tenant would want and choose a design to suit. Choose how many bedrooms, bathrooms and even living areas. There are multiple options to choose from when you building new.

               New homes command top dollar rental. People want to be a part of something new. A brand new property in a great location is super attractive to potential tenants.

               Capital gain. Selecting a block and builder yourself means you’re the one that will enjoy the capital gain when it comes time to selling the property.

               Tax advantages. Depreciation allowances apply on the building and also some home contents. Investors should consult with their finance professional to determine their exact tax advantages.

               Lower ongoing maintenance cost. Big repair bills are a negative to your bottom line and viability of the property as an investment.

               Save money! Do a little legwork and cut out the middle man. Investor buyers are paying a premium for ready-built.

Stephen Thompson said, “You also make big savings on the stamp duty payable at purchase. As the property is not yet built, you only pay stamp duty on the land component. You’ll still need a construction loan as the house is being built, but as the interest is all tax deductible, you’ll be out in front.”

 

Stephen Thompson

Stephen Thompson is the managing director of Allworth Homes.
Allworth Homes specialises in residential project home building. Allworth Homes builds for customers in NSW, Australia looking to build in new development areas or to knock-down an existing home and re-build on their land. There are a variety of single and double storey designs customers can choose from catering for a number of different sized blocks of land. Established in 1978 and recognised as one of the most efficient builders in the state, Allworth prides itself on a reputation built on superior quality workmanship, materials and customer service.

 

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About Author

Kizzi Nkwocha is the editor of The Property Investor and publisher of The Sussex Newspaper, My Well-Being Magazine, My Making Money Magazine and My Entrepreneur Magazine. Kizzi Nkwocha made his mark in the UK as a publicist, journalist and social media pioneer. As a widely respected and successful media consultant he has represented a diverse range of clients including the King of Uganda, and Amnesty International. Nkwocha has also become a well-known personality on both radio and television. He has been the focus of a Channel 4 documentary on publicity and has hosted his own talk show, London Line, on Sky TV. He has also produced and presented both radio and TV shows in Cyprus and Spain. Nkwocha has published a number of books on running your own business and in 2011 his team won the Specialized Information Publishing Association (SIPA) award for best use of social media. In the UK he runs a successful media consultancy called PRHQ which manages PR for businesses and individuals.

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