With the completion of the Hunter Expressway and the recent opening of new land in the Hunter Valley, including the Huntlee development, it’s a great time to consider property investment in the area. Just look at the reasons why it’s the place to be.
While there are plenty of existing properties available for investment, if you’ve got the right builder, the advantages of a new development are hard to resist.
Building from scratch – why it’s a smart choice:
- • Confidence: when you choose a quality builder, you have the assurance that the construction of your investment property will stand the test of time and feature the most up-to-date designs, not only in terms of aesthetics, but also when it comes to energy efficiency. You’ll also benefit from guarantees and warranties that apply to new structures and fixtures.
- • The best tenants: today’s renters come from all walks of life and there’s a significant proportion of the population prepared to pay a premium for a new house or duplex that requires minimal maintenance.
- • Bang for your buck: the claimable depreciation value for a new investment property is higher than that of an older home. You’ll also save on stamp duty as it’s only payable on the land, as the house is not yet constructed.
- • Future-proofing: when the time comes to sell your investment property, by being able to prove consistent cash flow, your resale value will be higher.
New properties – the top 4 options
Once you’ve decided to build a new investment property, you’ve got several options to suit a range of lifestyle choices, land size and availability, and budget.
1. Freestanding house
The most straightforward choice, a freestanding house means only one set of tenants to worry about and, depending on the size of the house, lower maintenance costs than dual occupancy, i.e., there’s only one kitchen, one-two bathrooms, etc.
A duplex opens up a whole range of options for the property investor as you are essentially doubling the investment return without doubling the cost of the build. Perhaps you’re looking for a new home too; build a duplex and you can live in one and rent the other one out. A duplex is also great for a narrow block so you can get more for your money, especially if you’re looking to invest in areas of the Hunter Valley where land is at a premium.
3. Multi-unit development
While a multi-unit development might seem like a big undertaking for a new investor, if you’re with a builder you can trust, you’ll find there are several potential advantages. For example, compared with having several freestanding houses as investments, by having your investment in the one development you save per door. That is, the cost of each dwelling in your multi-unit development is less than building one house, but the rental yield might be as high or similar ‘per door’. Also, when it comes to maintenance, if you have multiple issues that need seeing to, it’s cheaper to get them fixed at once in the one location than having tradespeople at multiple houses.
Perhaps you’re currently living in a house on a large block in a sought-after area. If the council zoning in your suburb allows it, why not consider sub-dividing the block and building a new house. You’ll soon be making money without leaving home!