New investment properties are generally built by property investors to be rented out rather than sold, generating a consistent, reliable income stream over many years. Entering into the investment property market is a key step for many investors seeking to establish a balanced investment portfolio.
Don't buy it, build it!
If you're considering entering the investment property market, have you thought about building a new home rather than buying an existing one?
The benefits of building a brand new investment property with Qattro are as numerous as they are convincing:
- Lower cost base: Building a new home is considerably more affordable than buying an established property, requiring less capital and providing a smoother entry point.
- Greater return on investment: Starting your investment from a lower cost base increases your rental yield. Current strong rental prices will greatly increase your profit margin, and with historically low vacancy rates supporting strong rental yields, your return on investment is greatly improved.
- Building your portfolio: As well as being a more affordable way to expand your portfolio, building an investment property also maximises the value of your portfolio in relation to your existing loans. Lowering the loan to value ratio (LVR) of your portfolio effectively creates more equity, giving you more bargaining power with the banks for future investments.
- Lower repairs and maintenance costs: Covered by new home warranties, your repairs and maintenance costs are lower.
- Tax benefits: Established homes do not attract the same level of depreciation benefits as new properties. New homes are eligible for a much broader suite of depreciation benefits, resulting in significant tax advantages.
- Quality assurance: Qattro is one of a select few South Australian builders with ISO 9001:2008 Quality Assurance Accreditation, providing utmost peace of mind with regard to our building practices and quality standards.
Contact us today to find out more about the advantages of building a new investment property, or to arrange an informal discussion.
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