Find all the tips, advice and new home inspiration with our Home Blog
Whether you’re single, have a partner, married with a small family, you’re needing to upsize to accommodate your growing teens, or you simply want to build an investment property, purchasing a house and land package is one of the most economical and efficient ways to create an asset for your property portfolio, and build a home you love.
Once you’ve decided on the area you’d like to purchase a home in, it’s important to research not only the available house and land packages, but also the key infrastructure your family will need to utilise. Things like proximity to schools, shops, medical centres, and public transport should all factor into your decision to focus on a particular area to buy in. If you have a young family, or are planning to have children in the future, make a note of the amount of green space, parks, and public gardens in the area so you can all enjoy the outdoors without having to travel too far from home. When looking at areas to purchase a house and land package in, have at least two or three suburbs you like in the event that there aren’t any packages available in certain areas – it’s always good to have a back-up location you love just as much!
When you’re working with your builder to find a suitable house and land package, don’t forget to carefully consider the size and shape of the land, as this will determine the cost and build time. A larger piece of land will allow for a bigger home, which will raise the cost and possibly increase the build time. However, you also need to think about the land shape as well. A corner block may affect the orientation of the home as well as the size of the dwelling the council will allow. If the land is located in a hilly area, you may incur additional costs to excavate land and build retaining walls, or you may have to choose a split level home to suit the slope of the land. Do your research to fully understand the geography of the area you’d like to purchase a package in to ensure there are no surprises when you’re ready to sign your contract.
House and land packages come with a recommended home design that the builder has selected because it suits the shape and size of the land. They will be able to show you the floor plan of the home and work with you to modify the plans to suit your lifestyle and outline any added costs this may add to the contract price. To get an idea of what the home will look like, visit display homes built by the builder to see the quality and craftsmanship in person, gaining an understanding of what the standard inclusions are. It’s also a good opportunity to check with the builder about what isn’t included in the package, such as driveways or landscaping.
One of the biggest benefits of buying a house and land package is that you’re working with one builder and signing one contract to purchase both the land and have the home built. When you’re searching for land on your own, you’ll have to do all the legwork yourself, from finding the land, getting it surveyed to see if it’s suitable to build on, contacting the council to get permits, then sourcing an architect to design the home, and find a reputable builder to actually build the home for you. This will make the process lengthy and time consuming for you, and can lead to a lot of unnecessary stress. Working with a builder to find a fixed price house and land package that’s already titled and ready to build on alleviates that stress, any additional costs, and gives you a support system from the start of your journey to the day you receive the keys to your finished home.
When you’re ready to purchase a home, considering a house and land package will make the process a lot easier and more economical for you and your family. Relieving the burden from you and finding a package in the location you love, as well as working closely with your builder to bring your dream home to life will make the search for the perfect house and land package an invaluable experience! To find a builder local to you, or to browse our available house and land packages, head to the Hotondo Homes website today.
Investing in real estate can be a daunting thought, particularly when you’re looking at purchasing an existing home. You may end up with an older home that needs a lot of renovating, meaning you won’t be able to rent it out and see a return on your investment for a number of months, or you may find the area you want to invest in either isn’t affordable or doesn’t have the types of homes that would suit families looking to rent. The solution may be building an investment property from scratch instead so that you’ll get a brand new home that’s move-in ready for tenants. By working with a building company from start to finish, you’ll have a qualified builder constructing a beautiful new home, and you’ll also have a team of staff overseeing the project from the initial discussions right through to handover. Take a look at our tips to help you before you embark on your investment property journey!
– Do your research and invest in an area that has good growth potential, rather than very well established areas that are more expensive to purchase in.
– Areas with new estates being built close to new amenities such as shopping centres, new schools, hospitals, and public transport will be worthwhile to invest in because they’ll be in higher demand with renters.
– Consider purchasing a house and land package rather than a home that needs to be renovated. Building companies will often have house and land packages ready to be purchased; they can direct you to the land sales agent and then using their own design commence building your home once the land sale is finalised.
– The home design has been carefully planned to suit that particular block of land, so there’s no additional work for the buyer to find an architect to design the home, meaning there’s no delay in commencing the build. This is especially beneficial for blocks of land that are more challenging for builders, such as ones with a slope. The builder will be familiar with the land and will have planned the design accordingly.
– You’ll save thousands of dollars on stamp duty because the home hasn’t been built yet, so there’s just the land tax to pay, leaving you with more money to allocate to other areas of your new home, like interior styling or landscaping.
– With so many suburban areas favouring a shift towards high density housing, you’ll have the option of building townhouses or a duplex for dual occupancy. You’ll get double the return if you choose to rent out both dwellings, or if you’re looking to downsize or get your foot in the door of the property market, you can live in one home and rent the other out.
– Dual occupancy builds also have a higher claimable depreciation value, which is immensely beneficial to the owner.
– The property can be negatively geared for tax purposes to grow in value over time, which is ideal for a property investor. Remember it’s always best to chat to your financial advisor before embarking on a property investment purchase.
– Building companies will often base their pricing on providing the client with a complete home inside and out.
– Fixtures and finishes are included in the cost, and client has the freedom to choose their desired interior finishes based on ranges included in the cost of the build. You can also choose to upgrade and invest in higher end finishes to appeal to renters. You’ll get a brand new, stylish home to rent out without the costly stress of renovating an old home.
– A newly built home can be designed and built to be as energy efficient as possible, meaning the cost of utilities will be more affordable than an older, existing home, which will appeal to renters, particularly larger families.
For investment property home design ideas, including some great duplex and dual occupancy options, head over to the Hotondo Homes website.
Before building or selecting a property to invest in, it is important to determine what your investment ‘gearing’ strategy is. This is where an understanding of whether your home is positively geared (a cash-flow property strategy) or negatively geared (a capital growth property strategy) becomes significant.
For a better understanding of what these terms actually mean, we have compared the two strategies and outlined the benefits and drawbacks of each. Consider both carefully before purchasing your investment property!
Generally considered the safer, more conservative method, positive gearing occurs when the rental income on your investment property exceeds the cost of maintaining it, including loan repayments, interest, rates and maintenance fees. Positive gearing allows for short-term profit, as the extra cashflow works as an additional income stream. Positive gearing works in areas where rental demand is high (so investors can charge higher rent) and when interest rates are low.
Negative gearing occurs when the property runs at a loss – that is, the rental income is less than the costs of maintaining the home. Investors will need to use their own funds to make up the shortfall. Ideally, a negatively geared investment will grow in value over time, and the increased profit from selling it is expected to outweigh the initial financial losses. Negatively geared homes are often located near capital cities, which generally perform better and increase in value over a longer period.
Hotondo Homes have over 90 home designs, perfect for investors. Find out more at hotondo.com.au
*Hotondo Homes is not an authorised financial adviser so please seek professional advice for your investing enquiries
You may have multiple tenants over the years at varying stages of their family life, so a versatile design where a study can be turned into another bedroom or a second living room could be ideal.
When building or purchasing an investment property you’ll want to take every step possible to ensure you will get the greatest return. Factors that can impact this include:
There are more financial benefits when you build an investment property compared to buying an existing home, including fewer repairs and you’re able to claim depreciation at tax time.
Property can be less volatile when compared to shares or other types of investments.
Property is tangible – you can see exactly what you’re buying.
You are able to rent out the property to gain a second income. If it’s negatively geared you will need to pay the gap between rental income and the mortgage repayments. If it’s positively geared you will have more money in your pocket.
Capital growth – the value of the property may increase over time.
You are able to gain tax benefits for negatively geared properties, depreciation and other expenses that you might have to pay as a landlord.
What to consider
It can be expensive if the property doesn’t have a tenant, if there needs to be any repairs and paying mortgage repayments.
Mortgage repayments can be affected by interest rates, so if there are any increases you may have to pay the difference.
Negative equity – if the value of the property goes down, the property might not be worth what you owe.
Capital gains tax – if the value of the property goes up, when you sell the house you will have to pay tax on the value increase.
It’s best that you speak to a certified financial advisor prior to buying an investment property as they will be able to help establish what would be the best option for you.
The Milestone Range
The Milestone Range is filled with designs perfect for investment properties. These designs are both versatile and practical making them the ideal choice for investors.
With a wide range of designs available including single and double storey, terrace and duplex properties investors are sure to find a home that will suit their needs and help build their property portfolio. Visit hotondo.com.au to find out more to find out more about investing in property.
*Hotondo Homes is not an authorised financial advisor so please seek professional advice prior to buying an investment property.