Frequently Asked Questions
Why are there tax advantages with new homes compared with existing properties?
One Door recommends buying land and constructing a new house onto the land. This means that stamp duty is paid only on the price of the land. It also means that the purchaser is able to depreciate the building, as well as the fixtures and fittings. This depreciation can be used to offset income from other sources. An existing home or unit will not offer the benefit of being able to depreciate the building and may not even allow for depreciation on fixtures and fittings.
Why is it important to have a significant part of the value of an investment property in the land?
The long term value of a property will be determined by the value of the land, rather than the construction on it. As time goes by, a building may change or be replaced, so the one constant will be the land, so it’s important that this represents a large proportion of the investment.
How do I know that the property is really market value?
One Door is aware that some unscrupulous operators have sold property above market rates. This is obviously not the best route to financial success, nor is it a way to build a long term relationship. One Door is committed to a long–term relationship with our clients. This means we will only recommend properties we believe are at market value and have good prospects of increasing in value. One Door provides customers with a written valuation from an independent value for any property recommended.
Is property a good investment category?
The value of property in Australia has generally double on average, every 7 or 8 years for the past 100 years. There have been market slumps from time to time, but the overall longer term trend is generally upwards. Many people like real estate because of its tangibility and because of its generally steady growth over time. Also, as the saying goes, “everyone has to have a roof over their head, so there will always be a demand for property.
What if I don’t have any spare money to invest?
One Door will assess your current financial situation and will only recommend investing if you are in a reasonable position to do so. Often you don’t need a lump sum to invest, the equity in your current home or other property may be sufficient. If you don’t want to take any more out of your regular cash flow, then One Door may be able to arrange a loan top up facility for you.
How do I get started?
Contact our friendly One Door team today on (07) 3040 4451 or click here.