Investment Package

If you are in the market for a rental property then our investment packages may be exactly what you are looking for.

Real estate can be a great way of building an investment portfolio with the intention of long-term wealth creation. Whether through personal investment or via your SMSF, ‘bricks and mortar’ has long been the favourite investment vehicle for most Australians.

South-East Queensland continues to show positive signs of growth. With a large number of people migrating or relocating to Queensland we are seeing an increasing demand on our rental properties.

Rental prices are being forced up and good quality investment properties are in high demand. Most investors are getting great tenants, with high occupancy rates and strong rental returns.

Why build rather than buy?

  • Stamp Duty When purchasing vacant land and building an investment property you are only required to pay stamp duty on the land component of the property. On an average investment of $400,000 this could be a saving of over $7,500.
  • Builders Guarantee Constructing your investment property with Ausmar Homes gives you a 7 year structural guarantee and a 25 year guarantee against termites. This means that should you have a structural issue over that period you can simply call Ausmar and we will rectify the problem with no out of pocket expense to you.
  • After Sales Care We have a dedicated team of experts that are employed to handle maintenance and after sales care and service. We also carry out a 6 month maintenance warranty inspection on your home ensuring that everything is in good working order.
  • New vs Old A brand new property will have less maintenance issues and will command a higher rental yield and attract a better quality of tenant when compared with an older pre-existing house. Plus you know exactly what you are getting and you deal directly with the company that is helping you build your investment portfolio.
  • Taxation Benefits Claiming tax depreciation deductions on investment properties is an important part of a property investment strategy. All of our investment homes qualify for a capital allowance, equivalent to 2.5% p.a. of the construction cost of the house. This capital allowance is fully tax deductable each year that the home is used as a rental property. The depreciable contents of the home such as hot water service, air conditioner and dishwasher can also be depreciated over their useful life. We will provide you with a depreciation schedule showing the amounts you can claim – please ask for a sample.

 

Investment designs

Investment designsWhen conducting our market research, we asked the experts what a tenant is looking for in a rental property. The answers were almost always the same;

  • Remote controlled lock-up garage with direct access to the home
  • Air conditioning
  • Ceiling fans in all of the bedrooms
  • Dishwasher
  • Outdoor entertaining area
  • Low maintenance (particularly the garden)

 

Investment inclusions

  •  Massive stamp duty savings
  • Depreciation schedule
  • Tax deductions
  • 6.5% Return during construction
  • 2 Year rental management guarantee

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Quick questions

How do I save on stamp duty?

Stamp duty is calculated and paid to the State Government based on the improved value of the land you are buying. If the land already has a house built on it then the improved value of the land includes the value of the house – therefore you pay stamp duty on the total (house and land). If you build a new house on a vacant block then you only pay stamp duty on the value of the land before construction commences – this will save you around $7,500 on a typical investment property.

How does depreciation work?

The Australian Taxation office allows you to claim depreciation on many items within the house (e.g. oven, floor coverings, dishwasher etc) as well as the actual building itself (called a capital allowance). Ausmar will give you a tax invoice and a depreciation schedule of all of the items in your house – this will make claiming the tax deductions really easy for you or your accountant. The best bit about depreciation is that it costs you nothing during your ownership and gets you real dollars back on your tax each year.

What is negative gearing?

Negative gearing refers to the fact that a rental property has expenses which exceed the property’s rental income each year. This effectively creates a tax loss which can be claimed in your tax return, offsetting other income with the intention of getting you a nice big tax refund. Some expenses will be paid for out of your rental properties cash flow and some will be expenses allowed by the Taxation Office (e.g. depreciation).

What is capital gain and how is it taxed?

A capital gain is the profit you make on your rental property when you eventually sell it. Current Australian Taxation law divides your capital gain in half before you pay tax on it meaning in most cases you only pay tax at half the rate compared to other personal income (including income from money invested with your bank). The other great thing about capital gains is that any tax payable is paid after sale (meaning your property can grow in value and you won’t pay tax on the profit until after you sell it – if you never sell it you never pay tax – simple as that.

Return during construction

We know that as an investor you will want to receive an immediate return on your investment from day one. Generally this is achieved by buying an existing home and having a tenant occupy the property after settlement.

Builder will pay you a 6.5% p.a. return on the drawn down portion of your building contract while we build your investment property.

This will assist you with your cashflow during construction and will also give you an extra level of comfort knowing builder has an incentive to build the home as quickly as possible.

2 year rental guarantee

 

2 year rental guaranteeBuilder will provide a rental guarantee that gives you peace of mind that you will receive a rental cheque every month for two years after we complete your house. Over this period builder will pay a professional property manager in the area to manage your property.

After the two years it is your decision if you enter into a further agreement with the property manager or elect to sell or manage the property yourself.