As house prices surge, it can be harder to get your money in the market. A powerful way to get fast PROFITS is by choosing a GOOD house and land package. You might think that house and land packages are just cookie cutter housing but we completely disagree. Using the power of the group we can generate instant equity by simply acquiring these packages at a Discount for Bulk Buy.
Using the house and land strategy (and choosing the right property) is one of the BEST real estate principles you can use right now in the current property markets (seriously using this strategy could make you 60-100K in equity in 12-24 months if you buy right).
Currently there are an array of great benefits such as exemptions on stamp-duty and generous government grants, which means there’s a massive amount of interest in these types of dwellings.
House and Land packages are one of the best investments available in the Australian real estate market today.
Right now the Pro-Active Investment Group team are looking in some of the hottest locations and using multiple strategies to acquire properties that make our clients capital in the shortest time frames possible.
a) We are negotiating the BEST prices for land (i.e. Builders have the connections to secure land at prices unlike any other)
b) We are looking at locations with the upcoming infrastructure that will see fierce demand in the area’s and prices rise
c) We are looking for deals that offers both high rental yields in capital growth areas…..where the population is flocking to
d) By using multiple strategies – i.e. using government grants to reduce upfront costs, discount on land, buying in growth areas, buy and hold and using time to build equity… within 12-14 months the property is seeing $60-$100K the client can recycle out and use to invest again…
e) This is a sold A-CLASS investment strategy that every PAIG investor can use to grab some quick equity AND keep moving forward.
For instance, if you can find a parcel of land worth $200,000 but you manage to negotiate a discount and actually purchase it for $180,000, you’ll create $20,000 worth of equity. (Plus if you’re entitled to government concessions on the way in… you’re truly ahead BIG TIME)
At PAIG we have spent years negotiating the MOST reputable builders – willing to deliver less expensive package than their competitors…..and we know who to use and who to AVOID like the plague. We have the type of relationships (that our clients can tap into) that for instance if a build was going to cost $220,000 we can negotiate it down to $200,000. There’s another $20,000 worth of equity.
Using the RIGHT type of house and land deal is a fantastic principle if you’re looking to buy a property in a growth market and create some inherit equity.
Key construction phases of building a new home :-
The process generally involves two phases:
1. Pre-construction phase :- This phase includes drawing of the plans, finalising contracts, securing finance and obtaining a building licence and planning approvals. This phase takes approximately 26 weeks, depending on the size of your home and the volume of other work the builder has going on at that time.
2. Construction phase :- Which is the actual building of the home, and takes approximately 28 weeks from the time the concrete slab has been poured.
As construction gets under way, major builders will assign a liaison manager to you. This person is responsible for all communications during the building process. It’s a good idea to record the details of all communications you have during the construction of your home. These records will provide security for you if any unforeseen circumstances arise or if there is a need for dispute resolution. At this time, you will also be introduced to your building supervisor who will carry out a pre-start inspection of your land. He/she should discuss matters relative to the site, works and safety.
Be respectful when visiting your building site. Dealing directly with on-site tradespeople or contractors can cause confusion and potential mistakes. Always channel any queries you have through the building supervisor or your liaison manager.
On top of things its important to factor that these packages are build around the following areas :-
• Strategic Location
• Population Growth
• Infrastructure Spending
• Low Vacancy Rates
• Tightening Supply
Advantages of House & Land Packages :-
- You can manufacture your own equity right from day one – your land + build costs, if done intelligently, can be less than your property’s end value. That’s manufactured equity at its simplest.
- You can get greater tax deductions than existing properties anyway – new properties are loaded with an awesome depreciation schedule, especially if you use “owner occupier” specifications BUT don’t over spend.
- They are in high demand by quality tenants – new homes with new fittings, features and designs are highly desirable and you can charge a premium on your rents… obviously increasing your yields.