If you’re an overseas investor (or an expat) looking to buy a house and land package in Australia, did you know that it can be much more affordable than buying in your own country?
For example, the average home in Singapore costs AUD$1.5 million or more. Depending on where you buy a house and land package in Australia, prices can be much cheaper than that, even in major capital cities like Sydney, Melbourne and Brisbane.
There are many good reasons why you might be considering a new house and land package. Perhaps you’re looking at it as an investment or as somewhere to live when you retire. Or it might be for your children’s future education needs.
The benefits of a house and land package
- It’s a fast and easy way to buy a home that can be built specifically for your needs.
- Land in Australian urban areas is becoming harder to find. Developers of house and land packages have already found the available land for you.
- You only pay government stamp duty on the value of your land purchase, not on the construction of your house. But if you buy an established house, stamp duty is generally charged for the full purchase price of both the house and land.
- If you’re buying an Australian house and land package as an investment property, it is usually easier to attract good quality tenants to a new home in a good area.
- Your tax deductions for the depreciation of the fixtures and fittings will generally be higher for a new home than for an established house.
- There is minimal maintenance required on a new home for several years. An established home on the other hand may require ongoing maintenance almost straight away.
- House and land packages are often master-designed communities that are close to local amenities, conveniences and parks. This planning feature can make them attractive investment properties to potentially generate attractive rental income and long-term capital growth.
- New homes typically come with a builder’s warranty that protects you if anything goes wrong in the first few years after construction.
- New home builders must comply with the latest Australian building standards. These standards change over time. If you buy an established home, it will only be compliant with the standards that were in existence when it was constructed. Some homes in older areas of Australia can be up to 100 years old or more.
There are also some potential problems with Australian house and land packages that you need to be aware of and overcome.
How we can help
Financing for Australian house and land packages is increasingly becoming limited and expensive to access if you are a non-resident or foreigner.
At FindAHomeLoan, sourcing mortgage solutions from Singapore and Australia for investors looking to buy property in countries like Australia is one of our specialities. We can help you navigate Australia’s tough mortgage lending restrictions for foreign investors.
We would be happy to speak or meet with you to discuss your needs and goals. We believe you should have a mortgage partner. Just like you engage a mechanic to make your car run smoothly, we can do the same with your investment property financing.
We’ll take the time to understand your circumstances and provide the best advice.
Contact us now to find out how we can help you!