25 Nov Adelaide Property Investment
Adelaide Property Investment AdviceMany Adelaide property investors ask Property Asset Planning what types of Adelaide property investments we would recommend. Over the last few years Property Asset Planning has seen that the best Adelaide property investment strategies include new townhouses and new houses. It surprises some people that building brand new houses is a very good Adelaide property investment option.
Why would I go to the trouble if there are so many established houses for sale in Adelaide?
There are benefits in the process of building your own brand new Adelaide investment property from scratch. It is a lot easier than you think and may give you many more benefits along the way.
Yes! Your Adelaide property investment Portfolio can be “hands off” along the way.
Full Turnkey Package
Many Adelaide property investors shy away from building a brand new house because they think the process will be too hard. Let property Asset Planning introduce you to the concept of “Full Turnkey Investment packages” as part of a smart investment strategy. Full Turnkey means that the house is finished ready for a tenant to just turn the key and move in at completion. The house build contract includes the carpets, tiles, window dressings, flyscreens, paths, driveway, fencing, lawn, landscaping and including the letterbox and TV aerial! The house designs, colours, facades and finishes are all done by experienced design teams to suit the demographic and lifestyle demands of the area / location. So for your retirement strategy, an investment property, built Full Turnkey provides a perfect stress free solution.
You buy a package of land with a house already designed for that Lot, to be built by the builder for you at a fixed price contract over a period of 4 -6 months. This can be as painless and easy process. It is not a home you are going to live in so you do not need to be emotionally involved. The builder looks after the construction process and the bank pays the builder at each stage. Council approves the plans and building certifiers, building inspectors and bank valuers make sure the house is built to specifications. Builders normally send you progress photos at each stage that is very exciting. This opens up being able to invest in the Adelaide markets, away from where you reside, where there may be stronger drivers for growth and better rental yields than in your own backyard. A smart Adelaide property investment portfolio has diversity in location that is the key to a good Adelaide property investment strategy.
Finding a Tenant
If you build it they will come! That is what Property Asset Planning has found. Tenants can be very demanding and a brand new Full Turn Key investment package is very attractive to them. They are willing to pay a premium rent to have all the modern features that come with a new house – stone benchtops, ensuites, alfresco outdoor areas, family rooms and media rooms, minimum gardens to maintain and all appliances new and shiny, no plastic gloves and cleaning needed before moving in! Smart Adelaide property investment has a higher rental yield, a Self Managed Super Investment property portfolio will have positive cash flow without even trying.
Savings on Stamp Duty
One of the many motivations for your Adelaide property investment strategy is the significant stamp duty savings. As the house is not yet built, stamp duty is only required on the land component of the purchase price. For example, a 4 Bed House & Land package has a purchase price of $370,000. The land component is $135,000 and the Build component is $235,000. The stamp duty payable at settlement is approximately $3450. If the property had been purchased completed the stamp duty would have been closer to $12,200. So a smart Adelaide property investor has already made savings of about $8700. Although there are interest payments to be made during construction, a Smart property investor would capitalise those interest payments as this is all tax deductible
Maximising Tax Benefits & Minimising Maintenance
Building an Adelaide investment property portfolio where you can maximise the tax benefits gives peace of mind as can anticipating holding costs. No nasty surprises as there will be no maintenance costs as everything is under 3 months warranty. As it is a new Adelaide investment property taxation claims can be made on expenses and depreciation on the building and contents. A smart property investor would utilise the taxation process, getting their accountant to process a Depreciation schedule and a PAYG Tax variation from provided by the ATO. Having the structure of this investment property process set correctly, with the low interest rates in the market place, this may provide cash flow positive outcome. That’s right no money from the pocket. With the Adelaide property above (modelled on a scenario above), the tenant and taxman pay for your property.
Property Asset planning is a trusted Adelaide property investment company, call today for the best Adelaide property investment advice.