How to ensure that your new home isn’t just a great place to live, but is a great asset.
Building a new home is all about enjoying the good life. It’s about expressing your individuality and having the opportunity to choose your location, design and finishes while enhancing your lifestyle.
But imagine the possibility of building your equity and property portfolio while enjoying the benefits of your new home!
While building your dream, it is possible to:
- Overcapitalize and get burnt longer term
- Come out ‘equity neutral’, where the house is equal in value to your costs
- Achieve a profit from day one. Where the total of the land cost and the building cost is less than the valuation.
- Achieve a profit over the time you live in the home. This is largely achieved by buying land in an area that will appreciate over the coming years.
Make sure you are building a great asset by simply answer the following question.
Does the land price + the building price = the price that similar properties are selling for in the area?
If not, why? Is it a depressed region? Is the land cost too high? Is there too much housing stock on the market? Is this the right design, style and size to build in this area?
Often over capitalization is simply a matter of wrong design, wrong size or poor aspect… things that can be easily corrected.
At Bellriver, we are passionate about assisting our customers in getting this equation right. For people who get this right, they often keep building new homes and renting out their older ones and building up a property portfolio that is relatively cost neutral to them. Ask one of our qualified consultants to help you through this equation. In many ways, protecting our clients hard earned money and getting it to work for them is the most important and rewarding part of the whole house building equation.