Investing in House & Land

Should I add a house & land to my portfolio?

Houses are typically far enough away from the hustle-and-bustle of the inner city that its residents enjoy a quiet atmosphere, close-knit community and surrounding natural attractions like the beach, river or national park. With a larger footprint, a well-designed house must be built for its location. This includes the evolving needs of its residents as they transition from couple, to family, to empty nesters.

Many architects are designing new houses with multiple living spaces to accommodate growing families and children that stay at home for longer. For investors, houses are typically more expensive than apartments and townhouses, but experience slightly higher capital growth. They attract a different type of tenant and are a cornerstone of a well-diversified property portfolio.

What are the advantages of investing in house & land?

House and land is an important component of any property investment portfolio and no diverse portfolio is complete without one. Some of the advantages of investing in a house include:

Flexibility of use – Investing in a house is likely to allow an investor more control over how it’s used. An investor can choose to simply rent out the existing space, subdivide, renovate or knock-down and rebuild over the long-term..
Long-term rental potential – With more control over an investment property comes greater flexibility in terms of what can be offered to potential renters. As an investor in a house you may choose to allow pets and offer longer-term rental agreements to ensure longevity and protect against loss of rental income between tenants
Higher capital growth – House and land investments tend to offer higher capital growth than apartments and townhouses. Of course there are factors that must be taken into account with this assumption such as location and the state of the market at the time of sale.

Performance

Traditionally higher capital growth and no strata management fees.

Growth Drivers

Higher land content, proximity to schools, beaches, parks and highways.

Location

Typically within 15-50km of a CBD or business hub.

Tenants

Families with children or couples with a need for space.

How can you be confident you’re investing in the right house & land package?

Many Australians may be keen to buy a new house because of its growth location, government incentives on offer, relative affordability, potential tax advantages or simply to enjoy the cutting-edge design that suits a contemporary lifestyle and appeals to a high-calibre tenant or future owner-occupier. But all houses aren’t created equally. How can you be sure of the delivery and quality of the end product?

We share the same concerns. That’s why we thoroughly review every property we recommend, and only partner with industry-leading developers.

Quality

Developers who share our passion for delivering houses of an exceptional quality.
Legacy

A proven track record of delivering quality houses in the right locations.
Value

An affordable price point that represents value for investors.

I didn’t know a brand-new house and land package could cost less than $400,000. My first purchase was in Ipswich, South East Queensland, which shows good signs for growth in the short-medium term, and it’s only taken a couple of weeks to find a tenant.

— Sarah Wu, Chemist

Why would we turn down a housing development?

Our brand reputation means we can be as selective as we want when it comes to choosing which developers we partner with and which houses we recommend to our investors. In reviewing a housing development, we’re considering many factors including location, convenience, comparable pricing, size, floorplans, contract terms and surrounding infrastructure. And of course, the developer: what’s their track record, which builder are they using, what’s their strategy to ensure the development gets off the ground successfully?

We would typically reject the majority of properties we analyse.

Learn more about how we select properties

See how our customers are building their portfolios with us

Nirmal Singh

Occupation

Mortgage professional

Objective

Rental income target of $500K per year

Portfolio

11 properties

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Drs. Chris & Cindy Aubrey

Occupation

Specialist doctors: Surgical Assistants

Objective

Replace work income to spend more time with their children

Portfolio

9 properties

Read more