Looking for new Homes & Houses For Sale
New Home and House Buyers Guide...
There are several factors to consider when looking for a
home for sale. While buying a family home may be an emotional investment, a property investment on the other hand must take other factors into consideration such as whether the property will attract capital gains and whether the property is tenant friendly. Before you start your search for a home for sale, here are five questions you should ask.
What is your budget?
It is important to firstly and foremost set a budget before you start looking for a home for sale. As a general guide, your mortgage repayments should not exceed 30 percent of your gross income. Your budget should include your deposit as well as upfront costs such as mortgage insurance (if applicable), stamp duty and other taxes and allow cushioning for several interest rates rises above the current interest rate. You also need to also factor in other expenses associated with home-ownership such as water rates, house and contents insurance, house repairs and for some, strata levies or land rates.
What location do you prefer?
The position of the property you want to buy is the second most important factor. Not only does the location need to have strong capital gains potential, it also needs to be tenant friendly. Your property investment should be close to amenities such as schools, public transport, shopping centres, hospitals, major highways and cafes and restaurants. Houses with outdoor entertaining areas, swimming pools and large backyards may also prove popular with tenants.
Do you want to buy a property off plan or buy an existing property?
The timing of your purchase is important. You need to decide whether you want to be buy an existing
home for sale or purchase a new property off the plan. There are several advantages of buying a new property investment. You will be able to secure the property with a small deposit at today’s prices and pay the balance when the property is completed. A new property’s fixtures and fittings will also attract more depreciation than an existing property.
Are you looking for an apartment or house and land package?
Another essential factor to consider is whether you want to buy an apartment or home investment. Apartments are generally cheaper than houses and usually provide a higher rate of depreciation than houses or existing buildings but you may have less control over your investment as the ownership of an apartment is governed by a body corporate and you will have to pay strata fees every quarter. A home on the other hand may be a more expensive purchase but traditionally attracts better capital growth because of the land content but you will be subject to land tax and other fees.
What are the tax advantages of buying a home?
One of the major drawcards for buying a
new home is that there are considerable tax benefits and a new property will provide a higher rate of depreciation. Any legitimate expense incurred in running your investment property should also be tax deductible against your overall income. If you own an
investment property, you may be able to deduct capital works deductions which apply to the period your property is rented or is available for rent and are generally spread over a period of 25 or 40 years.
Find Investment Property has listings for some of the best homes for sale currently available so start searching to find your next property deal and add a home investment to your investment portfolio.
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