Investing in a new home comes as a fantastic opportunity for would-be property investors to look into. It’s so easy to see the appeal of constructing your ideal home from scratch. But before you consider whether or not to invest in a new property, let’s delve into the main pros and cons.
Raised Property Value
If you own the property, you will be able to gain from any increase in the property’s value. This can be due to changing demands within the area, and can occur even if the property doesn’t see any changes.
This is going to vary area to area, and will depend on where you choose to invest. Consider your area wisely – while some may rise substantially within years, others may stay flat for a longer period of time. It is important to remember that investing in property is a long term journey.
A large amount of the costs associated with an investment property are tax deductible. Some of these deductions may include interest and fees you pay on your loan, advertising and seeking out tenants, any property cleaning, gardening and other around the home duties. With changes to the legislation related to this, newly built investment properties are able to experience much high deductions than existing investment properties
Stamp duty is a tax on certain transactions, including real estate. It is imposed by a state and territory government. It may vary, however, based on the state or territory in which you live.
It comes as one of the biggest expenses when making a property investment. However, when building a property (a House and Land package, for instance) this duty is calculated on the ‘land’ aspect only, resulting in significant savings.
The Building Process
Obviously, one thing to consider when you are talking about investing in new or existing properties, then you will need to consider the building process. You new investment property will take slightly longer to get tenants into, however, on the upside, a new property requires far less maintenance than existing homes. You may have to wait for the for the building process but no renovations or upgrades will need to be made for years.
How can Carrell Group help
For more information regarding financial options when building, or investing in a house and land package, or other investment opportunities, be sure you speak to one of our Myrtle Beach custom home building experts on 843-399-4299.
ABOUT CARRELL GROUP:
Carrell Group is the leading Myrtle Beach Custom Home Builder dedicated to residential custom homes and land development. As an custom home builder, Carrell Group helps new home owners identify and compare new home designs, house and land packages and land estates. It’s the smart way home buyers, who are considering a new build, can find the ideal options to match their individual needs. Home building is a big decision, we make sure you get it right.