When considering investing in property, you will want to choose a home design that is simple and versatile.
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:
- Age of the property – tenants will be willing to pay more for a newer home.
- Location – what amenities are around the property? Is it in a central location? How far is it from the city/airport/transport/shopping centres etc.?
- Home design – is the home versatile enough to suit a range of tenants at any stage of family life?
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.