Buying into real estate is a common and very popular way of building an investment portfolio. Bricks and mortar is a tangible asset that is bound to grow in value over time. Other benefits of buying into the property market for investment purposes include earning a regular rental income, capital gains and other tax deductions. Real estate is generally a low-risk investment option and, unlike stocks and shares, requires minimal industry knowledge to invest in.
One of the first things to think about when investing in property is where you should buy. Real estate is all about the location, so consider where you want to invest and what kind of lifestyle a prospective tenant might be seeking. For example, if your tenants are professionals then it’s a good idea to buy closer to the Perth inner city. If you prefer to rent to young families, then buying in the suburbs or close to good-quality schools is a better option. Look at the local amenities as well – if it’s in the outer suburbs, is there a good transport system close by? Buying into an area with Government initiatives and major developments in the pipeline, such as a new stadium or beach side revamp will almost guarantee a fantastic return in the future.
The next thing you need to consider is what kind of property you want to purchase. Investing in house and land packages is a terrific option as they are big on affordability and save you having to purchase land and a house separately. Tenants love renting new homes as well, and there is little to no maintenance required for years to come. You will be able to reap the depreciation benefits of a new home, offering higher depreciation deductions than those offered for older properties. You are also bound to save a packet on stamp duty, as you will only be paying stamp duty tax on the land component itself and not the house.
The best way to get started on investing in property is by doing your research thoroughly. Working with reputable home builders in Perth that have plenty of local industry knowledge and experience will certainly help you on your way. They can guide you on what to build and where according to what your preferences are, such as location preferences, block size and design expectations.
At Future Home Living, we understand how important it is to choose an investment property that’s just right for you. We have innovative, affordable design options that are big on sustainability. Our unique, eco-friendly building process guarantees an extremely fast fifteen week build time, meaning you can have tenants moving in and generating income far more quickly than you would with more traditional building methods and time frames.
For more information about how Future Home Living can help make your investment dream an affordable, sustainable reality, call one of our team today on 9444 9333.