There are many benefits to building an investment property over buying one.  Stamp duty is only paid on the cost of the land that you purchase, depreciation benefits are greater, rental returns are often higher for a brand new property and if you build in the right suburbs you can see significant capital appreciation within relatively short periods of time.

If an investor who is not a first home buyer purchased a $440,000 established property in Queensland and had a 10% deposit they would be required to outlay approximately $14,731 in stamp duty, $44,000 as deposit and $4,276 for Mortgage Insurance.  This is a total of $63,007.  Many banks will let you capitalise mortgage insurance into the loan.  If this occurs the outlay would still be $58,731.

If this same investor built a $440,000 investment property using a St George no deposit construction loan they would need to outlay approximately $7,286 in stamp duty, $750 application fee, $400 valuation and settlement costs and $11,880 Loan Extension Fee (a fee charged by St George instead of Mortgage Insurance).  This is a total of $20,316.  A personal loan or equity in an existing property can be used to cover these costs effectively taking the investors initial outlay to nil.

If you own an investment property then the Australian Taxation Office will usually allow you to claim depreciation.  Depreciation is a decrease or loss in value to your asset caused by age or wear and tear.  The depreciation that you claim is a tax deduction.  The newer the asset the longer it’s useable lifespan and therefore the greater the depreciation benefit.  This is another benefit to building an investment property compared to buying an existing property.

Building an investment property also makes sense financially when it comes to rental return and capital growth.  If you can find an area where rental demand is high, housing supply is low and the population is expanding rapidly you are virtually assured low tenant vacancy and strong capital growth prospects.

Parts of Queensland’s Sunshine Coast are currently experiencing a housing shortage.  Supply of housing can’t keep up with demand, caused mostly by people migrating to the coast for lifestyle reasons.  This has caused a rental shortage and shielded the coast from falling prices experienced in some of Australia’s major capitals.

Billions of dollars in new residential development projects are currently underway on the Sunshine Coast.  In Noosa there is Resort Corp’s $210 million Quay West development, the $300 million Viridian Resort and Spa and Settlers Cove.  These 3 developments employ more than 700 tradespeople on any given day.

Reed Property Group’s Emporio precinct in Sunshine Cove at Maroochydore achieved more than $9 million in sales within 4 weeks of the projects release.

To assist our clients to enter this market Crow Financial has teamed up with a local Sunshine Coast builder Reilly James Construction.

Reilly James Construction provides house and land packages designed specifically for investors.  We provide the financing for your investment and together this provides a complete turnkey investment property solution.

Reilly James Construction has 4 investment property house and land packages available in Chancellor Park estates in Sippy Downs on the Sunshine Coast.  These range in price from $430,000 to $450,000 and all are expected to achieve rental returns of between $430 & $460 per week.

Chancellor Park estate is situated 10 minutes drive from Mooloolaba which is arguably one of the best beaches in Australia and is right next to the only university on the Sunshine Coast.  There are major infrastructure developments underway including 6 storey office developments, major shopping centres with Woolworths and 40,000m2 of retail space, a police station, and residential units with major park upgrades.

For detailed information please contact Scott Crowther on mobile 0410 403 388, office 1300 733 281 or click here to make an online enquiry.