Building New Homes is a Smart Investment

Australians love property. We love buying homes, building homes, renovating, and investing in homes. 

While the cost of building has increased over the past 12 months, so has the cost of buying existing homes. This blog article shows how one of CJ Homes' clients built the perfect house to start their investment portfolio.

Initially, our clients Clay and Melissa considered buying an existing house. After researching the cost of building and the benefits of a new house compared with purchasing an older home, they opted to build with CJ Homes.

Our Brisbane Northside Consultant, Peter Hollow, walked them through our Griffin display home and showed them the quality of our inclusions and the quality of our construction. The couple was aiming for a family-friendly home to fit on a standard flat block in Kallangur, and our Oakley design was perfect.

The floor plan spans 187.37sqm and includes a master bedroom and ensuite with three children's rooms, a family bath, and an open plan kitchen with combined dining and a living area that opens onto the back patio. A separate lounge in the front of the house provides an extra room for adults or children to enjoy. The design flows effortlessly and is perfect for a family.

Clay & Melissa worked with our Colour Consultant and selected a neutral colour palette with fitting and fixtures to suit various tastes. The selection process was straightforward with minimal stress, and they added a few upgrades to the kitchen to appeal to more tenants. Once all the decisions were made and the plans approved, the building process ran relatively smoothly.

Our Site Supervisor worked hard to keep tasks on track with some disruption due to labour and supply shortages. Clay and Melissa are extremely happy with their decision to build an investment property with CJ Homes.

The couple built the ideal home to suit the demographic of the Kallangur. They leased their investment home to a lovely family with two school-aged children and their family pet. 

Factors to Consider when Building an Investment Property

• This property was leased at $550 per week. Rental income can be offset against deductions. Rental income should cover your mortgage repayments. 
• Build a suitable house to appeal to the demographic in the local area.
• Choose a growth area with suitable infrastructure and facilities to attract your ideal tenants.

Know what you can claim as deductions to offset rental incomes. Deduction Items include:

• Depreciation deductions for the Building & Plant & Equipment Asset. Total deductions were calculated at $10,877 during the first full financial year. 
• Council Rates
• Water & Sewerage 
• Mortgage interest only claims
• Property management fees
• Repairs and maintenance (which should be minimal with a new home).

Clay was so impressed, and he provided these kind words of support.

"CJ Homes has been transparent, upfront, and punctual with their replies, starting with when we walked through their display home and all the way through the build. They have made our first home build streamlined and minimised any variables on their end to reduce uncertainty. They clarified any other concerns about the contracts, building stages, and what is to come and expect. CJ Homes New Home Specialist Peter Hollow was very knowledgeable and helped guide us with the design we required within our proposed budget. Peter is a really genuine and helpful bloke. The Colour selection consultation was professional and provided great detail on the consultants' behalf. Jodie acted on our vision and guided us in that direction. She was forthcoming, which is precisely what you need, especially if this isn't something you always do. Jodie's guidance made the selection a breeze. The Administration staff have been very prompt with their replies, transparent, and forthcoming on time frames due to the current building industry and the strain it is under during COVID. I will have found our builders for our next house or houses."

 - Clayton & Melissa, Investors, Kallangur

If you're keen to build for yourself or as an investment on Brisbane's northside, contact our New Home Specialist Peter Hollow on Ph: 0455 077 956 or enquire about our house designs, and value-packed house and land packages at www.cjhomes.com.au