Build or Buy Investment Property

Old vs New Homes  – What’s Your Best Option for Property Investment?

Most homes were initially built for private homeowners, designed with their lifestyle needs. Second-hand or older homes can become investment properties, but unlike building an investment property, they often require major renovation work to create a home suitable for the current rental market. Older homes in established suburbs have benefited from years of capital growth, making them expensive to buy, compared to a new home investment property. Another consideration is unseen and often unexpected expenses due to hidden damage caused by water or termites such as wood rot. Renovation costs can blow out and lead to overcapitalising and reducing your profit. So if you’re asking yourself is building a house a good investment, we can say, “Yes,” –with a few provisions. 

Building an Investment Property - New Homes for Investment

The rise of master-planned estates with new infrastructure and services has made living in these communities very popular, especially for young families. In recent years, house and land packages have become more affordable. New homes enable you to tailor the design of your investment property to fit your property investment strategy. If your prime goal is to maximise passive income through high rental return, there are a range of house designs you can consider when building an investment home, depending on the area you choose to invest in.

Here are a few examples:

Here are a few:

• Single Dwellings such as low set level homes built on flat blocks offer the best value. These are simple, quick to build, and most affordable. Two storey homes are also cost-effective. Naturally, well-built homes in good locations with attractive views will entice higher rents and increase in value over time. To gain a higher rental return, it’s worth considering adding premium fitting and fixtures which will improve the overall value of the property and demand a higher resale value in the long term as well. We’ve 

• Dual Occupancy are two dwellings built on a single block of land, under one title. The main property looks like a typical home with a front entrance and roof, but it is in fact divided into two dwellings separated by a firewall with a private second entrance. Each has individual service connections for energy and water. Our dual-living designs feature three or four bedrooms in the main home, plus two bedroom options in the second dwelling.  Each home will include a kitchen, dining, bathrooms, and lock up garages.  You’ll also receive the added benefit of a double rental income through multiple tenancies, and reduce the risk of no income, should one tenant move out. The disadvantage is that these homes are often resold as investment properties and may not attract as high a price as those for owner occupied homes.

• Multi-generational design homes feature two separate living zones, the main dwelling plus a one or two bed self-contained second living zone. As housing affordability increases, we are seeing more and more families opting to combine resources and live together. Larger families, especially those with adult children or aged parents are likely candidates for these spacious homes that offer privacy and independence.

As a property investor building a new home for investment, you'll save on upfront development costs plus material change of use, strata or body corporate fees. Our Multi-generational homes can be built in famous master-planned estates such as Spring Mountain, which has seen almost 30% capital growth in the last 12 months. Multi-generational designs can also be built in nearly any development that does not allow auxiliary dwellings as they look like one complete unit from the outside.

Negative gearing on investment properties will enable you to offset expenses. On newly built residential properties, you can also claim property depreciation allowances for both the Building and Plant & Equipment Assets (Divisions 40 & 43).

Choosing the Right Project Home Builder for Your Investment Property

One essential element of how to invest in building a house is choosing a reliable home builder. Of course, when it comes to building, you'll want to engage a builder who is experienced in designing cost-effective house plans and building efficiently. Our CJ Homes Building Designers have many house plans, easily modified to suit your block and budget. This will save you thousands of dollars in drafting fees. Once house plans are approved, our Building Supervisors will expertly manage your project and oversee every stage of your build. You can have complete confidence that your investment property will be built to our high standards and meet all compliance requirements.

With almost two decades of building residential homes, CJ Homes should be your first choice. If you own land and looking for cost-effective designs to appeal to a wide range of tenants and a reliable home builder , contact our experienced CJ Homes Sales team.