The value of land, according to land experts Strut and Parker rural, has doubled over 2006-2008. While the returns have been up, since then people are often confused about the real estate investment that they should make. While many people tend to jump into already existing home options or an inner circle apartment, and then carry out a knockdown rebuild, which has proven to be lucrative, there are many other investment options that you can look into. A good option to consider is a vacant land where you can build a new home. There are many benefits of this option. Read on for insights.
New homes are more attractive to tenants
The main driver for a real estate investment is the return on investment. One way of ascertaining this is having a quality attractive home for your tenants. According to research, many tenants look out for a modern, clean new house that offers all the convenience there is. This also means that the option of a knockdown rebuild can work provided what the tenants remain with is a new house. What’s more, you will gain more as you can charge premium rent and thus garner high returns on your investment.
Reduced stamp duty levies
Usually, after the purchase of an already established home, property investors are normally required to pay for the stamp duty for the house together with the land. This, however, does not happen when you buy land for sale Sydney offers as only stamp duty will be required to be paid because the house is yet to be constructed. Click here for http://www.edenbraehomes.com.au/buying-guide/knock-down-rebuild-sydney/knockdown-rebuild-process/
Enjoy tax deductions and depreciation
Your newly constructed Spring farm house & land can easily notice the positive effects of depreciation. There are a number of depreciable assets that come with a new home and they include fixtures, fittings and even the actual cost of the construction. All these can claim tax deductions. A good example will be a new home that is valued at 500000 dollars and has fixtures that cost up to $60000. Such property can create up to 32000 dollars annually in deductions not to forget the other benefits that you will get as a result of claiming for the payment of rates, interests and rental management.