Investing In a New House

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Buying a new house is a major decision for anyone to make and it suffices to say that homebuyers really need to do their homework before deciding on a house to purchase.

Having said that, there are many advantages to owning property and investing in a new house is an excellent idea for most people, especially those who are looking to be financially secure in retirement. Here’s a quick look at the benefits of investing in a new house.

Why buy a new house?

There are many advantages to purchasing a new house over one that has been lived in. Moreover, as there are a number of fantastic house designs in the Aveling Homes range for homebuyers to select from, regardless of preference for a particular style, everyone is sure to find the house of their dreams in a location a commutable distance from the Perth CBD.

  • New homes attract better tenants. Homebuyers who are purchasing a house as an investment will find that new homes tend to attract better tenants, by which is meant tenants who will respect the property by taking care of it and residing there for years.
  • New homes offer stamp duty savings. Homebuyers can save tens of thousands of dollars by purchasing a new house and land package over a secondhand home, or even buying a plot of land and building on it.
  • New homes require little maintenance. Because the house is new and has been built to the most modern building standards, new houses are easy to maintain, offering homeowners minimal costs over the first five years when the property is covered by a builder’s warranty.

Additionally, new houses are available in a wide range of styles. As there is such a fantastic range of house design styles to select from, homebuyers investing in one of the new house and land packages in Perth will find that they may have their work cut out for them when making a selection. Whether it’s an ultra-modern design or something more traditional, yet still offering all the modern conveniences one would expect, homebuyers are spoiled for choice.

Depreciation and tax

Another advantage to purchasing a new home for those who are planning to rent their property to tenants is the opportunity to capitalise upon the forces of depreciation. In a new investment home purchased for $250,000 with fixtures totalling around 10% of that amount (approximately $25,000), around $15,000 in tax deductions can be created every year. That’s something for investors to think about when looking into their property buying options.

Important considerations

There are, of course, a number of important considerations that must be taken into account when purchasing a new house as an investment, including the location of the property, the infrastructure surrounding it (also take into account infrastructure planned for the area), and the fiscal health of the region. These are all very important considerations for investors.

Purchasing a new house and land package is an ideal option for property investors and there are many benefits to take advantage of when they purchase a suitable investment property.

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Tips on Getting a Great Deal on Commercial Real Estate

Getting involved in real estate investment can give you a great opportunity to make money, in particular within commercial real estate, an area of real estate that is often overlooked. Sometimes the scale of the project puts people off investing in commercial real estate or sometime the amount of money that is attached to it, the rewards however can often be far bigger than with residential properties. If commercial real estate is something that interests you then here are some ways that you can get a great deal on your next property.

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Use a Broker

Many people dismiss the idea of using a broker due to the costs attached but the benefits of using one far outweigh the negatives, especially if you are new to the game. I began investing around 3 years ago and use The Welfont Group, they have not only negotiated some excellent deals for me in the past but found property when I wanted it, managed my investments and more importantly, helped me to make a considerable amount of money. The cost of paying a broker is well worth it, they are the geniuses of the industry who have insider knowledge and who will watch your back when it comes to your assets.

Learn All That You Can

Even if you opt to use a broker, it is imperative that you learn all that you can about the commercial real estate industry and in particular the way in which it operates differently from residential real estate. Before I made my first investment into commercial real estate I read as many books, magazines and websites as I could for around a year. My idea was that if I was going to part with so much money then I simply had to know everything about the industry in which I was putting it into and you should do the same, that way nobody can pull the wool over your eyes.

Don’t Discount Run Down Properties

Very often people completely discount the idea of a property that is simply in need of some TLC, this gives you a great opportunity to snag a bargain. Naturally there are some buildings that are more trouble than they are worth but at the same time there are many that, with a little investment and hard work can turn you a great profit. Much of the time the owners of these properties simply want to get them off their hands so will accept a low offer and, providing you have a team in place to renovate the property, you can make great profits from these buildings. If you do see a dilapidated property then contract someone in the know to look it over for you, often there can be problems that the untrained eye can’t see and the last thing that you want is to buy a property that simply can’t be saved. The cost of paying a professional to the view the property beforehand will pale in comparison to investing on a property that requires large-scale renovation work.

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