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Just remember: land appreciates, houses depreciate! If you want investment return – it may not be best to build but if you want tax advantages – it may be best to build.
That’s a great site Jo. Many thanks, Tim.
I used to be State Manager for a building franchise in Tasmania. Western Tas is very difficult to get builders and even Burnie is busy for next 12 months or so. You may be better off buying established. Let me know where you’re looking at building?
I worked for a nationaly house building group and unfortunately the building flow changes from state to state. It’s amazing how differently things are done from area to area!
I’ve bought and sold many display homes in the past (only bought 1, sold heaps through my job). The best part is that your tenant is a builder who will maintain the house adequately and the second best part is the high depreciation you will get on the fixtures due to the level of specification that is used to complete the home. The builders may not necessarily be aware of the commercial value of their specifications as many suppliers provide these items very cheap or even free so it would be wise to find out the spec and get it costed elsewhere and you will enjoy very healthy depreciation. I bought one property and sold it at around the same price I bought it, however, I enjoyed great tax benefits and returns for the 2 years that the display was open. Display homes are usually over priced due to the level of landscaping, air conditioning and other works going into the house so it’s almost a commercial proposition. The other thing is that even the ATO is unaware of GST implications for your rent and there still has not been a ruling on it. I have a contact at the ATO, and she is a GST specialist for the building industry and invests in display homes herself and she still can’t give advice on GST and your rental? Much more to tell if you want advice.
