Tips To Ensuring Your New-Build Home Is A Profitable Investment
Building a property portfolio is one of the most common approaches to investing in Australia. The choice to purchase or build an investment property can be the perfect way to increase household cashflow and secure your financial future – if you’ve made an intelligent choice in the property type you’ve selected! In today’s blog, we provide four tips to ensuring your new-build has the best chance at becoming a profitable investment. Read on!
1 – Understand The Market In The Area You’re Purchasing
If you’re after some insight on the growth, demographics and housing market in Melbourne’s suburbs, you can access a great range of information on local council websites. This can be a really helpful resource to keep you on top of changes that may be in the pipeline for a suburb and offer an idea of the sort of community your prospective tenants will become part of. If there are lots of development opportunities and exciting infrastructure projects in the works, you can be fairly sure that you’ve chosen a growth area in Melbourne. This not only means potential for capital growth on your home, it also provides a number of employment opportunities for the future! Both are great signs of an intelligent investment.
2 – Select The Right Type Of Finance
There are many options when it comes to financing your investment property, so searching out sound advice in this area can make a big difference to your financial position. While interest on an investment property loan is generally tax deductible, some borrowing costs are not immediately deductible and knowing the ins and outs of this is critical to the process. Structuring your loan correctly should be based on advice from an experienced financial advisor. While there are some concessions and offsets available, these are generally aimed towards first home-buyers, so its best to talk through your finance options with an expert.
3 – Choose An Intelligent Home Design
When making investment decisions, selecting timeless designs with practical features will certainly pay off. Open-plan living is the way many of us prefer to live today and logical features such as external access from the laundry and internal access from the garage may not be standard with established homes but can certainly be achieved with a new build. Your prospective tenants will love the fact that everything is in great working order – no leaky taps or faulty, tired appliances. You can guarantee everything will be brand-spanking in a new-build home. Given the cost of purchasing a home is out of reach for some tenants, there is great appeal in renting a new home – which means higher rent payable!
4 – Ensure The Property Is Attractive To Tenants
A great approach to investing is to look at an area through the lens of your potential tenants. Many families are looking for close proximity to schools, sporting facilities, medical centres, supermarkets, community centres and parklands. Individuals and couples on the other hand, may be looking for simple access to the CBD for work, bustling retail strips, trendy cafes, bars, restaurants and social opportunities. Being part of a thriving community is of huge importance to all prospective tenants. Keeping these things at front of mind is sure to ensure happy tenants and result in a profitable investment!
The Aston Homes team are happy to assist with information regarding your next investment. If you’re considering one of our floorplans for your new build, feel free to reach out with any questions you might have. Contact us here!