Thinking about investing in a new property development in Sydney and wondering whether it’s really worth it? There are a number of good reasons to consider both new property development in Sydney and buying established. The option that is right for you will depend on your specific investment strategy. If you’re looking to get a good understanding of what makes newer properties appealing, then read on below.
Investing in new property development in Sydney
Buying brand new can be a great move, but it’s not always the right choice for everyone. There can be some serious benefits to investing in a new property development in Sydney, like being able to claim depreciation on your taxes as the building and fixtures will naturally depreciate over time. A new property development in Sydney is likely to come with lower maintenance costs and may be more likely to attract tenants willing to pay a greater amount of rent. Newer properties can be a great thing for first time investors to get into as they will require a much lower level of care. So, what type are options are there for getting into a new property development in Sydney?
House and land packages
One of the most popular ways that homebuyers and investors will get their hands on a new property development in Sydney is by opting for a house and land package. This is an easy, stress-free way to build a new home. All the hard work of finding a block and building a home is done for you. You really don’t have to do any of the groundwork of trying to find a block of land that you like, speaking to developers of picking out home designs, although most house and land packages give you the flexibility to do just that. It is worth it to keep in mind that the majority of house and land packages that you come across will be located in newly developed suburbs. You should look into whether or not the location is one you like and think about whether or not it has the facilities you need (or the kinds of facilities that tenants will be looking for). Modern amenities like schools, shops and public transport can help to increase the value of a new property development in Sydney.
Buying a block
If you want to get into new property development in Sydney then another option that you might consider is buying a block of land in the location that you want to build. This is a more involved process but will mean that you need spend a lot more time researching the area you are looking to invest in but can also reap great financial rewards. It really is all about location, location, location when it comes to homes. What should you keep in mind? One potential benefit of doing this is that a lot of states will only charge stamp duty based on the value of your block, not the potential dwelling that you plan to build later on. When looking into buying a block make sure you think about factors like the slope, soil and gradient of the block.
Buying off the plan
A common way to get into new property development in Sydney is to buy off the plan from a builder. This basically means that you are committing to buying a residence that is yet to be built. You could save a lot on stamp duty buying a property in this way and you may find that there are other incentives that make this an attractive option.