Many of the properties we offer are brand new. This provides many benefits to investors such as providing a builder’s guarantee and substantial tax deductions for depreciation. But as they are new, they may be ready for construction, under construction or only recently completed.
Although the builder will generally move forward with the build without any real involvement from you, we find that most buyers are interested to see how the build is progressing. We can monitor the construction and, if you live some distance away, we can send you photos and assist with any queries you might have.
For a house, the land contract is usually a simple 30 days process, assuming the land title is registered. Then the builder will get approvals from council and might commence construction a month or so after the land contract settles. The build might take around 5 months to complete with progress payments due (from your lender) at various points in the build. Remember, you need to allow for interest on the land loan and the increasing construction loan during this process. The finished property can often be worth more than the combined land and construction cost so you can see an uplift in the value of the investment immediately on completion.
Alternatively, an apartment building can take 2 years or more to finalise with a deposit due upon signing a contract and full payment due on settlement when it’s complete and when you take ownership.
The construction period can involve lots of questions from buyers, so we work closely with you during this process to ensure you understand what’s happening and that it’s all running well. Having Investment Property HQ working with you will take all the stress out of this stage and let you enjoy the excitement of seeing your property appear before your very eyes.