Why Buy New Property
Low Investment
Purchasing a new investment property requires relatively low savings or personal equity. In most cases you can use the banks money to purchase up to 90% of the purchase price. (In some rare cases you can even borrow the full amount from the bank to purchase a property.)
Demand
Tenants prefer to live in newer properties. The benefit here is you will have more tenants wanting to live in your investment. Means you will have a greater amount of tenants to choose from (so you don’t have to lease the property to anyone who doesn’t tick all your criteria on their application) and your property won’t be left vacant. (As someone will be willing and waiting to move in as soon as the previous tenant moves out). Meaning less money you are out of pocket!
Low Maintenance
New properties require much less maintenance than some older properties. Should mean much less time and money put into maintaining the property for the tenant – which means more time and money for you!
Consistent Growth
Property values have consistently proven growth time and time again over the long term. You benefit from 100% of the increased value in the property even though you may have used the banks money for up to 90% of the purchase price.
Tax Incentives
Property expenses and ATO (Australian Tax Office) depreciation of assets can work to reduce the tax you pay each year. In some cases you may be approved to have tax rebates paid as part of your weekly or monthly wages instead of an annual return from the ATO. Hire a good tax accountant to maximise your taxable deductions.
Leverage
As property values increase, you can use the equity built up to invest in more properties and continue to duplicate your wealth. Leveraging is a great way to build your property portfolio.
Speak to us today about how we can help you find a new residential property that meets your investment needs.