Home buyers have a wide range of options available to them, and building a new home is one of them. We explore the
benefits below.
1. Both buyers and renters will generally choose a newer home over an older one, all other things being equal
One of the great benefits of building a new home is that your pool of potential tenants or buyers is generally larger than
for an older home. And for good reason. Whether you are selling or renting your home in the future, knowing your
prospective market is as large as possible is a strong advantage, which is likely to play out through strong long-term
financial outcomes.
2. Less maintenance
Lower maintenance costs is an obvious benefit of building a new home, but it’s a factor many buyers of older homes
ignore. Owners of older homes may find themselves spending a lot of money maintaining their properties as maintenance
costs on older homes can be high. There is generally little to no maintenance required on a newly built home for a
number of years. These savings can add up to a financial benefit over the long term.
3. No need to renovate in the near future
Another benefit is not needing to renovate your newly built home in the near future. Often, buyers of older homes reach a
point when they need to invest in a renovation if they are to continue enjoying the property as an owner-occupier or an
investor. However, these costs can be significant and often not factored in at the time of purchase. New home builders
don’t need to factor these costs in now or in the foreseeable future. They can invest for the long term, knowing their
home is in great condition.
4. Warranties
New home builders benefit from warranty protections. Generally, newly built homes come with at least a twelve-month
warranty on everything in their home, including the painting and appliances. And longer term, they are generally
provided with longer term warranties on their home’s workmanship. This is a significant advantage compared with older
homes.
5. Attractive tax deductions available for investment properties
Investors in newly built homes are able to claim a number of attractive tax deductions. When their new home is
completed, they need to have a tax depreciation schedule completed which will determine how much depreciation they
can claim as a tax deduction looking forward. Depreciation is often the most significant tax deduction they can claim,
and it is generally higher on newly built homes because the asset is new and worth more than an older home.
As Landen’s Director Rashed Panabig highlights:
‘These five benefits of building a new home can make a big difference to a buyer’s long term happiness as an owner-
occupier, and to the investment case for a property investor. They are worthy of attention when you are considering your
property investment strategy.’
