Ask any seasoned investor and they’ll tell you that property is one of the most reliable ways to grow your wealth in Australia. But if you think the only option is to buy an existing home and rent it out, think again.
More and more savvy investors are choosing to build new homes instead and for good reason. From tax benefits to tenant appeal, the upside is hard to ignore. If you’re an investor (or thinking about becoming one), here’s why building could be the smartest move you make.
1. Bigger Tax Benefits
When you build a brand-new investment property, you can claim maximum depreciation for both on the building structure and the fixtures inside. That’s a major win come tax time.
- New builds: Claim up to $15,000–$20,000 in depreciation in the first year alone
- Older homes: Significantly reduced depreciation, especially if built before 1987
You can also claim interest on the loan during construction, plus other associated costs.
2. Lower Maintenance = Higher Profit
A brand-new home comes with brand-new everything meaning less risk of costly repairs in the early years. Plus, most reputable Perth builders include a structural warranty, giving you peace of mind.
No aging pipes, dodgy wiring, or last-minute roof repairs. Just a clean start with minimal hassle.
3. Modern Appeal = More Rent
Tenants are drawn to homes that are stylish, energy-efficient, and low-maintenance. Think: open layouts, ducted air conditioning, solar-ready designs, and smart-home features.
New homes generally rent faster and command higher weekly returns than older properties.
4. Flexible Financing Options
Building may sound complicated, but it actually opens up more financing strategies for investors:
- Deposit financing: From 10–20%, depending on your lender
- Equity release: Use your existing home’s equity
- Interest-only loans: Maximise cash flow and tax deductions
- Cross-collateralisation: Use multiple properties as security
At Emily Rose Homes, our finance brokers help structure your investment loan to suit your goals.
5. Location & Design Strategy
Not all investment properties are created equal. That’s why we take a strategic approach to each build:
- We research growth suburbs with high rental demand (like Jane Brook, Treeby, or Alkimos)
- We recommend floorplans that maximise rental appeal
- We partner with builders who offer investment-grade inclusions without overcapitalising
Our consultants work hand-in-hand with your accountant to ensure everything is structured with long-term gains in mind.
Let’s Build a Property That Works Hard for You
If you’re ready to start or grow your investment portfolio, building a new home could be your smartest move yet. From tax benefits to tenant-ready designs, we’ll help you build a property that delivers on every front.
