It is undeniable that warmer, drier, healthier homes make for happier tenants and while the new standards are strict for existing homeowners the benefits of exceeding modern living standards are clear to see. However, it can be extremely expensive to bring an existing home up to today's healthy homes standard. As landlords of existing, older properties come to the realisation that upgrading their older home can be expensive, time consuming and disruptive, a lot of owners are cashing in and selling their old investment in favour of a new build.
Not only will most be able to sell for solid capital gains if they've held property in the right areas for a few years but most will be able to upgrade to new homes (and potentially multiple new homes) increasing their streams of revenue whilst simultaneously decreasing their maintenance bills.
If you’re a homeowner looking to trade up,we can offer a way to sell your house without a real estate agent as well.
The brightline test has been extended for existing homes to 10 years whereas a new home will only need to wait 5 years to sell tax free.
Lower Deposit
A new build requires a lower deposit to buy. Some banks will lend up to 80% of the new home's value, as opposed to 60% for existing properties.
Lower Maintenance
Lower maintenance costs for new homes and will generally attract better tenants. All new homes are built to Healthy Home Standards.
A Better Income Stream
Depending on serviceability of loans, investors can get multiple streams of income by buying new as less of their own capital is tied up in deposit equity.
Interest Deductions
The interest component of a bank loan is not allowed to be deducted from an investor's income tax for an existing home but can be on a new build.
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