PURCHASING AT LAND VALUE ONLY
There are many people today that prefer to find a block of land and build their dream home than buy something already built or renovated. When building a brand new home there are many advantages, a big one being the warranties that you receive on the building itself and appliances you install.
When purchasing a block of land the money you use to pay off this block of land comes out of your 'after tax' income. Therefore, it only makes sense to purchase a block of land with an old house on it at land value, as you can receive tax advantages and a rental income.
The rental income helps with your loan repayments, and your purchase is now considered an investment. One of the downsides to this equation being that if the house is going to be rented there is a good chance if you bought at land value that the dwelling will need some repairs to bring it back to a habitable condition for tenants to reside in and pay a good rental amount.
You will also need to budget for the removal of your old home which on average is about $5,000 to $10,000 for a normal sized dwelling.
Please remember that when picking out your home to build, just as when you purchased, everything is negotiable and please make sure you have your solicitor check the finer detail in these sometimes very complicated builders contracts.
The main thing to consider is the future. The longer it is before you intend to build your home, the greater the advantage is in buying at land value only.
For independent advice on a block of land and its value, please contact our team today on 02 9960 1066 or enquiries@pkproperty.com.au.