As a landlord, you have a lot of options when it comes to purchasing property. Two of the most common options are purchasing a pre-existing home or buying a new development off the plans. While both options have their advantages, there are some clear benefits to buying something off the plans.
Firstly, buying a new development off the plans means you can customize the property to suit your specific needs. You can work with the developer to make changes to the property’s layout, finishes, and other aspects to ensure that it meets your requirements. This level of customization is not possible when purchasing a pre-existing home, as you will have to work with the existing structure and layout.
Secondly, it means that you are getting a brand-new property. This means that you won’t have to worry about any major maintenance issues or repairs for several years, as everything in the property will be new and under warranty. This can save you a lot of time, money, and stress in the long run.
Another advantage of buying a new development off the plans is that you can often secure the property at a lower price than you would be able to if you were buying a pre-existing home. Developers often offer discounts or other incentives to buyers who purchase off the plans, as they are able to secure funding for the development early on in the process.
It’s important to keep in mind that renters often have high expectations when it comes to the properties they rent, and many are looking for modern, warm, and dry spaces that offer a high level of comfort and convenience. In fact, studies have shown that renters prefer newly built properties over older homes as they often offer the latest in design, technology, and sustainability features. By investing in a new development, you can offer renters a space that meets their expectations and provides them with the comfortable, modern living experience they are looking for. Additionally, by prioritizing features such as insulation, heating, and ventilation, you can ensure that your property is warm, dry, and energy-efficient, which can help attract and retain high-quality tenants in the long run.
In addition, buying a new development off the plans can be a more environmentally-friendly option. Many new developments are built to high sustainability standards, with features such as energy-efficient appliances and materials, solar panels, and water-saving devices. This means that you can reduce your environmental impact while also potentially saving on utility bills.
It’s also worth noting that the government recently announced changes to the tax laws around interest deductibility for rental property investors in New Zealand. Under the new rules, interest on loans used to purchase a rental property will no longer be tax-deductible. However, there is an exemption for new builds, which means that interest on loans used to purchase a new build rental property can still be tax-deductible. This makes purchasing a new development off the plans even more attractive for landlords in New Zealand, as it provides an opportunity to secure a modern, high-quality property and potentially save on taxes in the long run. As always, it’s important to consult with a tax professional to fully understand how these changes may impact your specific situation.
In conclusion, there are many benefits to purchasing off the plans for a landlord. From the ability to customize the property to the potential cost savings and environmental benefits, this option can be a smart choice for many investors. If you are considering purchasing a new property for rental purposes, be sure to explore all of your options and weigh the pros and cons of each before making a decision.
If you have any questions about the best properties to add to your portfolio. Do not hesitate to get in touch, check us out at tommysrentals.co.nz