I have around 40k savings and thought about make a deposit to a Land which is to be released around end of 2022. During my research what I came to know is it's very hard to find a Land in Austral, Leppington, Box Hill, Schofields, McGrath Hills area. But there are number of H&L packages with reputed builders. But I need to settle Land once it get released and do the rest of the payment in stages. I'm just wondering whether I need to lock in to H&L package and wait so long. Or just buy already established property in a growth area and start making money. What do you suggest? I have only one IP for now and I'm kind of nervous about investing in Melbourne, Brisbane or other areas. I might need some advices from your guys to decide which path I should take.
The problem is your 40k in savings - that's only going to take you so far, even with LMI. Your best bet would have been to take advantage of all the FHB incentives that were available 12 months ago. But obviously that's gone.
Well you don't need to do anything. What appeals to you about buying a House and Land package instead of buying an established proeprty?
You generally pay a (big) premium for ready built. Also keep a watch out for 'marketer' stock on new builds where you're paying someone a fat $20,000-$50,000 to point you to the builder...! That's what gives new builds a bad reputation. Assuming you're paying fair value for a new build, the big advantages are: - Depreciation (compounded if you're on a high income). - Low maintenance (...if they build it well with good fittings, unfortunately somewhat uncommon). - Attracts quality tenants (if you have a good agent to take advantage of that). The disadvantages are: - Generally paying a premium, particularly if you can't maximize depreciation benefits. - Some modern building practices are of questionable quality compared to the good old days. - Blocks are usually smaller and in densely populated areas, arguably limited future capital growth potential.
Is it a good idea to buy built in establish area with good transportation connections, school or new estates with big land and new built, upcoming schools in few years etc? For living and school going kids