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Construction

Investment homes don’t have to be existing homes. You can make an income property from scratch, or build onto an existing building to make it more desirable. In these cases, you’ll want the input of an expert in construction and project management to help you prepare, plan, and stick to your budget.

 

Investment Property Guru Matthew Scott got his start in construction, and this experience has given him a true understanding of the value behind homes. If you have your eye on an empty lot, Matthew can give you detailed information about what goes into a new home, the risks and rewards of construction, and the market outlook in the area!

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The Pros Of Constructing An Investment Property

The most obvious positive is that you control the home from the foundation to the attic. When a property is newly built, the owners can depreciate the cost of the construction of that building for the first few years. This includes the internal fixtures and fittings because everything is new, so the owner can claim maximum depreciation for those components. This can be advantageous at tax time!

 

A brand-new home can also be built with the market in mind. You can research what buyers want and what they’ll pay extra for, making the new investment more desirable than an existing property. If it’s the right property for the location and built at the right price, a newly constructed home could even be cheaper than buying a similar existing property!

The Cons Of Constructing An Investment Property

One of the problems with planning a new investment build is that vacant land can be hard to find in the right area. Where there is new land, it’s usually in a place that is highly prized by developers. This means you’ll be facing some stiff competition that could hurt your profitability down the road. 

 

But the biggest drawback, especially for those with limited resources, is that you won’t have any income until the properties are finished. Until the property is liveable, you will have to pay for the land and construction costs, no matter how on track you are. Even when it’s finished, you will have to pay your own home mortgage or rent in the meantime as well as the outstanding costs for building the property.

Schedule a Consultation

Not everyone is going to experience these problems, though. If you’ve found an ideal piece of property on which to construct a home or a home on which to construct an addition, come to Investment Property Guru Matthew Scott for sound advice from a trained perspective.

 

Note: while Matthew Scott can provide renovation services, he does so only on a case-by-case basis at his own discretion.

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