New vs. Established Property: ADF Housing Entitlements Guide (2024)
When using your ADF Housing Entitlements, a crucial decision is whether to invest in a brand-new or established property. This video from Axon Property Group explores the pros and cons of each option, providing valuable insights to help you make an informed choice.
Thinking of using your ADF housing entitlements?
In this video, we break down the key reasons why buying a brand new property makes sense, especially if you’re looking to reduce risk and boost your cash flow. From access to government grants and stamp duty savings to better rental returns and depreciation benefits, going brand new offers major financial advantages. You’ll also enjoy peace of mind with builder warranties and structural guarantees.
Watch now to learn why we believe buying new is a no-brainer for ADF members ready to make their next property move.
Video Transcript
Hey, if you’re posted to the right location and you’ve put an awesome strategy together, and you’re now about to pull the trigger on your ADF housing entitlements, you’ve got a couple of choices. What type of property do you buy? You effectively have two options: do you buy an established property or a brand new one?
Here at Axon Property Group, in the name of lowering the risk and maximising the cash flow, we think going brand new is a no-brainer, every day of the week. And this is exactly why. It basically comes down to two elements: why undertake any risk if you don’t need to, and why wouldn’t you want better cash flow in your property? That extra cash flow can make a real difference in your daily life and help with week-to-week holding costs.
Did you know that when you buy a brand new property, that’s when you get the Government grants? For instance, the First Home Owner Grant doesn’t apply to established properties, it only applies to brand new homes.
Also, you only pay stamp duty on the land. So, if you buy a $500,000 established property, you’re likely to pay around $20,000 in stamp duty. But if you buy a $250,000 block of land and the house doesn’t exist yet, you only pay stamp duty on the land, so you’re saving about $10,000 up front.
People love living in a brand new property. It’s often in a master-planned community, which means high yields, better rent returns, and stronger cash flow. And when you’re buying an investment property, you get two forms of income: a rent return and a tax return. You’ll also get a lot of depreciation benefits coming your way.
Then there’s the added peace of mind from builder’s warranties and structural guarantees. For us, it’s an absolute no-brainer: lower the risk, maximise the cash flow, and buy brand new, every day.