New vs.
Existing Homes
The housing market provides incentives for purchasing new-build homes that existing homes can’t match.
What are the benefits to buying a new-build home?
A new-build will generally be exempt from the interest deductibility changes. This means an owner can claim interest related to the new build as an expense against their income from residential property.
The exemption is for a fixed period of 20 years from the time the Code of Compliance Certificate is issued.
The Bright-line rule
The Bright-line Property Rule means that if you sell a residential property within certain time frames, you may need to pay tax on any gains.
Currently, this tax does not apply to your own home that you live in.
NEW HOMES:
- LVR (Loan to Value Ratio):
Banks/Lenders may lend up to 90%. - Deposit requirement:
10%. - Healthy Homes:
Investors have comfort in knowing that new build properties meet the Healthy Home Standard.
EXISTING HOMES:
- LVR (Loan to Value Ratio):
Banks/Lenders may lend up to 80%. - Deposit requirement:
20%. - Healthy Homes:
Investors may be required to bring properties up to
standard which could potentially cost thousands.
How can we help?
Our experienced team can help guide you towards your property goals.
Connect with us for a FREE, no-obligation consultation with one of our team today.
