23/07/2021
The benefits of buying new-builds.
*Disclaimer: the content below reflects my opinion only. It does not mean I favour one type of house over another.
- LVRs (Loan-to-value ratios) allow borrowers to get finance on new builds with a smaller deposit than on an existing property. (10% deposit for first home buyer and 20% for investors on new builds, but 20% deposit for first home buyer and 40% for investors on an existing house).
- New Bright-line tests extend to 10 years and have exceptions on new builds which is a much better option for investors.
- More energy efficiency and comfort, plus a minimum maintenance required.
- New builds are easier to rent out and achieve for a better rent.
- Buying an off-plan house and land package when the market is going up, it’s highly likely to see gains on the property by the time they settle.
- New builds bring you less concerns in the long term, e.g., plumbing, wiring, or any expensive renovations in the future.
Stay tuned for ‘why existing properties?’ Next week!