This is Why You Should Invest in House and Land
June 13, 2024
Buying a house and land package in Australia has become increasingly popular with property investors during recent years. If you're looking to invest, below are five reasons why a house and land package could be a great option for you.
5 BENEFITS OF INVESTING
IN HOUSE & LAND
• AFFORDABILITY
House and land packages offer an affordable option for those wishing to invest in property, particularly first- time investors. A fixed price house and land package means you know exactly what you are getting for your budget- the price is clearly stated from the beginning. A house and land package in Melbourne's outer suburbs typically costs around $500,000-$550,000 AUD, which is significantly below Melbourne's median dwelling value of $830,000 AUD
• STAMP DUTY SAVINGS
The biggest saving for investors purchasing house and land packages is stamp duty. On a typical house and land package of around $550,000 AUD, you will save about $35,000 in stamp duty. Unlike apartments and established homes where you are paying stamp duty on the entire purchase price, you are only paying stamp duty on the value of the land component as the home hasn't been built yet.
• TENANT FRIENDLY
As a landlord you want to attract high quality long- term tenants to your property. New homes have the advantage of being incredibly attractive to tenants with modern conveniences and offer a place that tenants will love and want to stay in for many years. New homes also have the benefit of being able to charge premium rent leading to better returns on your investment
• LOW MAINTENANCE
As it's brand new, you'll be able to skip a lot of the costly and time consuming processes required with an older, existing home. For example, the house is unlikely to need any renovation or maintenance work, and there's no need to carefully document the condition of the house prior to the beginning of a tenancy.
• STRONG FUTURE RESALE VALUE
Depending on the location, landed properties will typically appreciate better in the long run. Thus, it would make more sense to hold on to these properties for five years or more before you sell to reap better returns
