Last Updated on Dec 21, 2019 by James W
Every day when you scour through the depths of the Internet, you will somehow find ads about house and land packages that are on sale. You see the taglines, “Buy your next home now!” or “Watch your investments grow with this package!” but you never really know if these are true. Today, we are all here with the same question in mind: Are house and land packages even worth it? Let’s find out.
Knowing real estate investments and how it works
Generally speaking, house and land packages are good investments to make. Especially in countries where real estate is booming, there are a lot of benefits for owner-occupiers. However, on the buyer’s side, there is a level of understanding what real estate investments are and how the industry thrives that makes it work. If you are not knowledgeable about these important factors, you would need to read up and research about it.
Key advantages of house and land packages
For those who are really interested in a big-time real estate investment, there are several loan packages with extremely low interest rates for house and land down payments. You can check out Bank with Newcastle Permanent for more information.
Most people against house and land packages would say that as soon as you buy your property, you will have to pay the mortgage for some time without income coming in. This may be true for a lot of real estate investors, but a new house and land package sets itself apart.
The keyword there is “new”. Tenants love brand new homes with shiny fixtures and fittings, therefore an investor with a new house and land package can quickly find a tenant to fill its mortgage dues.
Investing in a new house and land package also means little to no depreciation. Say, you buy a new house and land package. Everything is good as new, thus leading to a higher starting value compared to older properties. Simply put, you get all the depreciation benefits because your property costs more!
Lastly, a house and land package has long-term maintenance perks. After all, constantly maintaining a home will hurt an investor’s pockets in the long run, but with a new house and land package, that will not be a problem for years to come. You do not have to worry about things getting destroyed for quite some time.
Tips to consider:
- Research where there is high owner-occupier rates and where the market is predicted to grow in the coming years.
- When choosing developers, they must have a proven track record. You can check out other projects they have worked on, look up reviews, and see if the properties they have developed produced satisfying results. The last thing you want are concerns that could have been avoided before construction began.
- Ensure that the property you are planning to build fits the needs of the people in the area. Whether you are starting a housing or a commercial project, the property you are building must suit the area you have chosen.
House and land packages can be profitable investments for you. Consider these when you’re about to make an investment and make sure that you’re able to research the property market of your chosen area before finalising your decision.