Skip to content

Dual Income Invest

Building Properties for Investment

Building housing for investment income offers several advantages compared to purchasing existing property. Here are some key advantages:

  1. Customization: Building housing allows you to design and customize the property according to your investment goals and target market. You can optimize the layout, amenities, and features to attract tenants or buyers and potentially command higher rental income or sale prices.
  2. Lower Maintenance Costs: New construction generally requires less maintenance in the initial years compared to older properties. With newly built housing, you’re less likely to encounter immediate repair or renovation needs, reducing ongoing maintenance costs and potential vacancies due to maintenance issues.
  3. Energy Efficiency: Building a new property provides an opportunity to incorporate energy-efficient features, such as insulation, modern HVAC systems, energy-saving appliances, and solar panels. These features can attract environmentally conscious tenants and help reduce utility costs, making your property more appealing and cost-effective in the long run.
  4. Depreciation Benefits: In some countries, including Australia, newly constructed properties may offer additional tax benefits through depreciation. As the property is brand new, you can claim depreciation deductions on items such as fixtures, fittings, and construction costs, potentially reducing your taxable income and improving cash flow.
  5. Potential for Higher Rental Income: Newly built properties often command higher rental income compared to older properties, especially if they offer modern amenities and desirable features. By providing a fresh and appealing living space, you can attract quality tenants and potentially achieve higher rental yields.
  6. Government Incentives: Depending on your location and local government policies, there may be incentives available for building housing, such as grants, tax credits, or subsidies. These incentives can help offset construction costs and improve the financial viability of your investment.
  7. Reduced Competition: Purchasing existing property often involves competing with other buyers in a competitive market. Building housing allows you to bypass this competition, as you’re creating a unique property rather than trying to secure an already existing one. This can give you an advantage in terms of negotiating costs and securing desirable locations.

However, it’s important to note that building housing for investment income also comes with its challenges, such as the time and effort required for project management, potential construction delays, and the need for sufficient capital or financing. It’s crucial to conduct thorough market research, feasibility studies, and financial analysis to ensure the viability of your building project.

And this of course – is where Dual Income Invest is at your side with our years of industry insight. Contact us for a discussion to find out how we can work together.