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BUILDING INVESTMENT PROPERTY FOR PROFIT
Whether you are building your first investment property or your hundredth, the intention must remain the same and that is to maximise profits. First of all, you have a hub to build for the market. This means that you construct according to the area and place you buy the property in. If the area is occupied by young professionals then one or two-bedroom homes may be perfect. But if the area is surrounded by many families then three or four-bedroom homes with gardens are more likely to be in demand.
Having the ability to build according to the area would result in the investment’s success. In addition to that, you should also consider building more than one dwelling on one property. This might cost you more at the initial stage but would vastly increase the property value and almost doubles its income earning potential.
SAVINGS ON INVESTMENT PROPERTY STAMP DUTY
Building investment could net you a higher profit, but it could also cost you less. You’ll almost certainly pay a little stamp duty because when you build, you only pay the duty on the land, not on the property that you build on it.
MAKING THE MOST OF DEPRECIATION
When you build your investment property you can claim the depreciation of the building itself, and also the appliances inside it against your tax bill. This, therefore, reduces the taxable income. This method is most effective with new properties as it depends on which depreciation method is used. However, make sure you consult an accountant and a surveyor to make your investment’s tax efficient.
CALL TO ACTION
‘10 Properties in 10 Years’ is a team of highly-trained professionals and trained staff. We are one of the best investment advisors in Melbourne. You could book an appointment with us and have a great conversation with one of our team members who would tell you everything you need to know about properties. We would help you make the right decisions and invest in the right place. For more details and information call them at 1300-617-677. Or get in the touch with the customer care team at [email protected]