Here, we take a closer look at what makes off the plan townhouses and apartments such a smart option for investors.
Off the plan apartments and townhouses are typically constructed from set plans that have been created explicitly for broad appeal. With these set plans comes minimal input - which saves you, as an investor, from the gauntlet of decisions that can come with other types of new homes. With the design and construction process well taken care of, you can literally ‘switch off’ until the completion date nears and it's time to find tenants.
“From the point of visiting the Sales Centre, all the way through to settlement, it’s been such a smooth process.” Callan and Anna, Grace Apartments purchasers.
These properties generally come at a more affordable price than freestanding family homes. This can provide you with an entry point into the property market or allow you to secure real estate in a more desirable area that may have been out of your budget with existing homes. Read more about choosing the right location for your investment property here.
Forget factoring in any costly repairs in the immediate future; new apartments and townhouses will come with some warranties on the build and fit-out. And thanks to their efficient footprint, exterior maintenance costs are minimal.
Prospective tenants will be lured by the plush new carpet underfoot, and you’ll benefit from the property being built to current building code requirements. New apartments and townhouses are popular rentals, allowing you to attract a higher calibre of tenant.
Off the plan apartments and townhouses typically require a small deposit upfront, with the balance payable at settlement once the build is complete. This means you’ll have more time to save funds and won’t have to worry about mortgage payments until the property is ready to rent out.
In addition, investors can claim depreciation on the cost of a new build (and any fittings) once the property is generating an income. A good property accountant will assist with this.
Interested in finding out more on the nuances of new build finance for investors? Read how new builds stack up for property investors here.
Whether it’s your first or tenth investment property, having an experienced and trusted developer in your corner is crucial. With a proven track record spanning over thirty years, Cedar Woods can provide you with access to quality apartments and townhouses in desirable communities across a range of budgets, yields, and build timeframes - taking a lot of the guesswork out of smart investing.
Our eBook, an Investors' guide to buying an investment property, will walk you through the entire process. You’ll discover whether townhouses, apartments or standalone homes are the best option for you as an investor, and how to select the right area and community to suit your investment goals. Download it now.