4 reasons you should consider house and land

Whilst inner-city apartments boast convenient locations and resident amenities,  house and land packages are becoming increasingly popular with investors. Many agents and advisors in the industry are now recommending their clients add at least one house and land investment to their portfolios, and with the reasons outlined below it’s not hard to see why.

Giving these recommendations to your clients could help expand their portfolio beyond the standard 1 and 2 bedroom apartment.

1. Better tenants

Whilst apartment tenants tend to be relatively transient, house and land attracts families. Families require stability and are less likely to move around. Given the cost of being without a tenant can be an expensive one, especially for more than a few weeks, this is a definitely plus for any investor.

2. Less competition for tenants

Apartment projects are usually situated in and around CBD’s, meaning they’re often very close to each other and will be competing for tenants. Not only are the projects themselves vying for tenants, but an apartment owner could be one of many within one building all seeking people to rent their apartment. House and land is more scarce, particularly in the inner-suburbs, making it easier to find renters.

3. Shorter build time

Apartment investors will usually chase a long settlement time to maximise capital gain potential. With house and land however, where the time period from contract signing to settlement is usually much shorter, investors can benefit from quick cash-flow and year one tax benefits. In many circumstances where land supply is ready, builders can have a home built and ready to move into within 5 months.

This also benefits the agent, who will receive their full commission much faster than with an apartment sale.

4. Save on owner’s corporation fees

Owners of an apartment complex will need to pay expensive body corporate fees to contribute to the management of the overall property. House and land is a relatively low-maintenance investment that doesn’t require a body corporation and therefore means less costs for the owner.

It’s clear that there are various benefits when investing in house and land, both for the agent and the end buyer. Investorist is home to hundreds of house and land packages from leading developers all over the world. Log in today to find the perfect property for your client. Not a member? Sign up for a demo today to find out how we can help your business.