Invest
in new property
If you had a choice, would you prefer to live in a
brand new home, or one that is sagging around the rafters
and needs restoring on every front? The answer isthe
same for tenants: new every time! It's a fact that
tenants take extra care when they are renting a new
home.
Firstly, because they want to keep it that way, and
secondly because it's very obvious if they don't. New
homes mean clean, fresh and modern. Everything works,
with minimal hassle and downtime for the tenant or
owner caused by things going wrong.
New homes are also attractive from an investment point
of view because they entitle the owner to a depreciation
allowance of 2.5% per annum over 40 years. After this
period the full cost of the new home has effectively
been recovered from the government through depreciation
allowances. This is the case despite that the home
will be worth dramatically more after this period.
That's what's known as a real win, and a smart move
compared to investing in current (or used) housing
stock.
The whole tax concept underlying investment property
serves to encourage private investors to enter the
market for a commercial return, thereby excusing the
government of the day from having to play the role
of provider of property for renters.
Finally, a newly constructed home brings with it builders'
guarantees. Being brand new means that everything is
new and working, and should anything go wrong, it is
the builder's responsibility to repair it. This means
a major saving on potential maintenance and repair
costs, which simply adds to the real return on investment
that you will experience through buying 'new'.
Need help with your property investments? Contact
us now
|
