1. New developments are usually in high growth areas

During the planning of a new development, the property developers do extensive research for the local market for stability, growth and potential. Their experts often work closely with community planners to select their plots in well-located communities equipped with amenities or infrastructure, which can include hospitals, parks, schools, walking paths, recreation and child care options, as well as shopping centres. All of these can drive property prices and rental yield up, especially for owners and investors who buy into up-and-coming markets early.

3. New homes require less maintenance and come with builder warranties.

House & land packages are ideal for those investors who want ease and peace of mind. Many investors don’t want to be hassled with multiple property inspections, the stress of repairs and renovations, and the ongoing effort for upkeep. Therefore, purchasing a brand new house can seem far more appealing than acquiring an older, existing property.

If something does go awry after settlement, such as fixtures or structure defects, in most cases the repairs are covered by the building warranty. This is not the case for established properties, where buyers are at risk to pay for unforeseen repairs.

5. New builds for investments often come with tax benefits.*

For new-build investment properties, tax deductions can be claimed for the depreciation of the assets, which can include the building constructions, as well as the interior fittings and furniture like floor coverings, curtains and blinds. These deductions are often more significant than those of established homes, depending on how old the property is.

Also, property investors can also claim deductions for the costs associated with acquiring or maintaining the property, such as interest on the loan, advertising for tenants, cleaning and repairs, landscaping or garden services, pest control, agent fees, insurance, and council rates.