Why brand-new properties?
Most people live busy lives and a brand new investment property makes an excellent choice, with benefits such as:
- Low maintenance costs by way of time and money
- Government incentivises investment in new builds by exempting them from a 10-year bright line test and the removal of mortgage interest deductibility.
- Hence your tax position will be very well optimized especially if you also include the depreciation on chattels which is at the highest point on the new builds.
- New and modern means more desirable for tenants
- Built to comply with the Healthy Homes Act
- Higher rental yield for new builds.
- Loan to Value ratios on new builds only requires 20% deposit versus 40% for older properties; a massive advantage.
So if you want an easy to manage hands-off investment that is also lucrative then a new build is a great option to consider.