New Vs Used: 4 Reasons Why A New House & Land Package Is Better Value
If you’re considering getting into your first home then you’ve probably already wondered whether you should buy an existing property or purchase a house and land package and build your own. Both have their pros and cons, but when it comes to getting the best value, there are plenty of reasons why a house and land package is a much more appealing option.
If you’re looking to get the best bang for your buck when getting into your first home then make sure you check out the following ways in which a house and land package offers more value than buying an existing house.
Save On Stamp Duty
Stamp duty is calculated on both the house and land for existing properties, whereas with a house and land package you’re only paying the stamp duty on the land (because the house hasn’t been built yet).
Depending on the location, stamp duty on an existing for a home worth $500k could be in the region of $15,000 to $25,000. With a house and land package in the same area you’d probably pay around $5,000 to $10,000. We’ll let you do the maths on that one.
Tax Benefits and Depreciation
Building a new home as part of a house and land package entitles you to claim a host of tax deductions for depreciable assets (including the construction costs and the fixtures and fittings). Hire a good accountant to maximise your depreciation schedule and you might be surprised at the amount of money you can save. Buy and existing property and you’re not able to do any of this.
Minimal Maintenance Costs
Whether it’s structural repairs, remodelling or renovations, there’s bound to be some maintenance necessary to bring the existing home you purchase up to a standard that you’re happy with (you have to live in it every day of your life after all).
Building your own home allows you to avoid these extra costs by delivering the exact home you want straight off the bat. New homes are also more durable and built to much more stringent standards than they were in the past, so you’re much less likely to have to fork out for additional maintenance in the future.
When you build a new home you get the advantage of utilizing the latest building techniques and materials to deliver the best quality home possible. You’re also able to choose a design that perfectly fits your lifestyle and personality. In addition to this, new homes are also covered by a builder’s guarantee, so you can rest assured knowing that you’re covered if there are any quality issues.
When you add up all the contributing factors, it’s pretty clear that when it comes to getting the best value, a house and land package definitely beats buying an existing house. If you’re looking to get into your first home and want to make the most out of your hard earned money then check out our great range of first home buyers house and land packages online now or get in touch with us on 9244 7444 to find out more.
Posted by First Home Buyer Direct on 06 September 2018 | 0 comments
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