To Build & Sell or Build & Rent? That is the question.

Botania in Fraser Rise is a fantastic location for property investment because of its prime location and wealth of amenities on its doorstep.

Close to schools, shopping, and transport corridors, Botania is connected to everything a family wants and needs.

The biggest question to ask yourself when buying your first investment property is whether to build and sell or build and rent the property out. Check out our news post below where we compare the pros and cons of both options.

The Benefits of Build & Sell

Make your money back more quickly

If you are a seasoned investor, or want an opportunity to build wealth more quickly, than this is the option for you!

This allows you to take your newly earned capital and reinvest in another place sooner or utilise any profits you make for a holiday, life event, car or paying off your own home loan.

No long-term maintenance

The Build & Sell option allows you to reap what you have sowed sooner. You also do not need to go through the effort of finding a real estate agent to list the property with or allow for any funds for ongoing maintenance, as these become the responsibility of the new owner.

The Cons of Build & Sell

Higher initial outlay
If you plan to build and sell the house once construction on your investment property is complete, than you also need to allow some funds to do this with which can be hard to come by after settling and all construction costs are added up. We recommend factoring these costs in when you are initially looking for your block of land and deciding which home to build.


Market Dependant

Building and selling is a great option to consider if the market is up and your guaranteed to get a great deal for the cash injection you have made into the investment property. However, when selling a property for profit, the timing this property is listed in the market can make all of the difference. Nobody wants to list a property that hangs around unsold for months on end that will continue to rack up costly agent fees.

If the market is slower moving, hanging on to the property and renting it out could be the way to go.


Capital Gains Tax

Capital Gains Tax (CGT) is the tax you pay on profits from selling assets, such as property.

By buying land and building a home you are adding value so it is likely you will have a capital gain when you sell the property. If you do have a capital gain, it will increase the tax you need to pay. You may want to work out how much tax you will owe and set aside funds to cover it.

The Benefits of Build & Rent

Make more money over time

If you want an investment property that you can sit and hold on to, allowing you to grow your wealth over time, then this is the option for you.

Properties that are rented out are not affected by the swings and dips of the property market. This means you do not need to worry about selling your property at the “right time”, in a great area, your property will always make a great rental return.

What is rentvesting?
Rentvesting is when people live where they want to live and purchase where they can afford. The rental income they earn helps them to pay down their mortgage on the investment property, allowing them to become a homeowner without having to change their lifestyle.

Tax Benefits of Investment Property

Everybody loves receiving a great tax return and this is one way to go about bumping it up.

Owning a rental property allows you to claim a higher depreciation on the home compared to owner-occupier homes.

All home maintenance work, repairs, and renovations you also undertake on the property will also be a tax deduction.

The Cons of Renting

Home Maintenance
All homes require a level of annual upkeep and that goes without saying for rental properties as well. Rental home maintenance and repairs are legislated in Australia meaning, there are works that are mandatory to be carried out on a regular basis. These include such works as fire alarm checks and gutter cleaning. These do benefit you, as the homeowner, to protect your home but it can feel odd paying for something that doesn’t serve you directly.

Being a landlord
This alone is enough to turn some people off from buying an investment property to rent. It can be a daunting concept letting unknown people live in a home that you have worked hard for. Thorough insurance cover is a must here to ensure that you’re fully protected in the unlikely event it is ever required. All insurances are of course also a tax deduction.
If it is an admin or time barrier for you, Real Estate agents act as a great middle person to do a lot of the leg work of listing the property and liaising with tenants for you and once that trust is built, can even inspect the property once tenanted for you on your behalf.

We hope you have found the above information useful of things to consider when buying an investment process.

If you are interested in purchasing an investment property and would like to chat to a member of our friendly sales team, please feel free to reach out on either of the following methods:

For Townhome Enquiries:
Phone: 0421 096 981
Email: townhomes@botania.com.au
View all available Townhomes

For Land Enquiries:
Phone: 1300 888 182
Email: info@botania.com.au
View available House & Land Packages 
View Land for Sale 

Our Dual Key Terrace Range, a newly built Townhome for you!

The Terrace Range by Dual Key Victoria stands tall as an appealing modern home and smart property investment. The much-loved and ever popular Hampton façade has been repurposed into a strikingly appealing 3 bedroom townhouse for sale.

What’s most impressive about this affordable townhome, are the countless options this home presents to a family over their property ownership lifespan – a first home where someone else helps pay off your mortgage, an investment property with double the rental income, a home that can cater to visiting parents or in-laws or the perfect movedown.

The Terrace Range by Dual Key Victoria presents a smart investment even in uncertain times, presenting a 3-bedroom townhouse that can function as two separate homes under the same roof line.

If you are beginning your property-ownership journey, you may be wondering if you should buy an investment property or become an owner occupier. The Terrace Range by Dual Key Victoria allows you to purchase your first home and an investment at the same time.

Each level is self-contained and independent ensuring you’ll have your own space, secured access and designated car parking.

The current market begs for smart property investment. The Dual Key Terrace Range provides an avenue for you to protect yourself from mortgage stress by supplementing your loan repayments with rent from one of the levels, in turn enabling you to pay off your mortgage faster.

The Terrace Range is a full turnkey townhouse that is 100% ready to move into from day 1. This includes all fittings, landscaping, a letter box and washing line. All items that are not usually included in typical house and land package prices.

For those budding investors, wondering if townhouses are a good investment, the Terrace Range allows you to enhance the way you invest by purchasing a property that can offer you TWO rental incomes without the sub-divisional costs of building two properties.

For the low starting price of $635,200, you will be able to purchase two homes presenting a dual income property investment. With each of the levels providing their own rental stream, the Terrace Range can be positively geared from Day 1, providing you with returns of up to 7.9%* per annum!

The Dual Key Terrace Range is a functional home enabling flexibility as well as ensuring a smart property investment in a daunting property market.

Want to learn more about the Dual Key Terrace Range? Come to an Information Session!

The next Information session will be held on Saturday October 21st from 1:30pm in Diggers Rest.

Our builder partners, Dual Key Victoria, will run you through what this versatile home can do for you!
Providing you with knowledge about obtaining your very own high return investment property. Learn key information relevant to Melbourne’s current investment market including return statistics and rental demand. An exclusive information pack will be given to all attendees.

You can register for the event here.

You can view our Terrace Range here or speak to our team for further information via one of the methods below.

Phone

Email

It’s time to start your next chapter at Botania.

*Up to 8% return based on balance of borrowing amounts and estimated rental income. This information is for general information purposes only, it is not intended as financial or investment advice and should not be construed or relied on as such. Before making any commitment, you should seek advice from a qualified and registered financial or investment advisor.