Residential A: Single Dwelling
One house on a block of land – unlike Residential B properties, there are often no additional strata or body corporate fees on top of council rates for Residential A properties unless the property is in a planned estate with communal facilities like a pool, tennis court, gym, etc.
A VERY important consideration that investors need to take into account is whether this type of property is appropriate for the area and demand i.e. some areas are in high demand for families that want to rent a house with a yard - while apartments sit empty. Also consider the local environmental factors such as: “is the house located in or near a fire zone?” Without knowing upfront - your build price can rise upwards of $40 000 to meet fire standards - and that extra spend will not give you anymore rent return. What about floods? Our core focus is to provide you with the best information and identify the right properties for that area.
Residential B: Townhouse/Apartment
A Residential B property refers to a block of land with more than one dwelling on it. In most cases, these properties will have strata management and/or body corporate fees added on to the normal property rates. These additional fees, which are tax deductible, are dependent on each development but as a general rule, you would expect to pay less on a townhouse than say an apartment with two lifts and a pool.
For these types of properties, it is important to understand exactly what is included in your ongoing costs and to make sure that you get an in-depth cash flow analysis on the property. These additional costs can sometimes make what looked like an attractive offer initially – turn out to be a lemon.
PR Australian Properties provides you with the right guidance – with years of experience on our side, we know what to look out for.
Off the Plan
These properties refer to Residential B properties that still need to be completed. The benefit of off the plan is locking in the price at today's value - but not having to pay for months or years down the track. This type of property is suitable for people that have limited funds initially and need time to build up a deposit.
But, be careful with off the plan! It can stub your toe if not well thought out. One key issue that investors need to bear in mind with these properties is that, at the anticipated time for completion, the buyer will be in a position to provide the necessary documents for mortgage purposes, i.e. proof of income, balance of deposit etc. Another consideration for clients with a migration focus is you have to be sure the build is complete BEFORE you arrive in Australia.
PR Australian Properties will guide you through the process and ensure that you are never left to handle it any of the complexities on your own – giving you peace of mind that everything is taken care of.