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Investing in new builds
Is building a property from scratch more complicated than buying an established property?
There seems to be a common misconception out there that building a property from scratch is somehow a more advanced strategy compared to buying an established one, and the perceived greater risks associated with building means it should only be reserved for experienced investors with deeper pockets.
This couldn’t be further from the truth, and in a number of ways owning a brand-new property can actually be far less hassle for the investor than a second hand one.
It can also be a very savvy strategy to literally manufacture the most suitable property type for maximum growth potential within the respective market.
Not to mention that the ultimate cash flow of a new build far exceeds that of an established one, making the holding cost of brand-new investment property much cheaper.
Is building a property from scratch more complicated than buying an established property?
There seems to be a common misconception out there that building a property from scratch is somehow a more advanced strategy compared to buying an established one, and the perceived greater risks associated with building means it should only be reserved for experienced investors with deeper pockets.
This couldn’t be further from the truth, and in a number of ways owning a brand-new property can actually be far less hassle for the investor than a second hand one.
It can also be a very savvy strategy to literally manufacture the most suitable property type for maximum growth potential within the respective market.
Not to mention that the ultimate cash flow of a new build far exceeds that of an established one, making the holding cost of brand-new investment property much cheaper.
I don’t want to wait 12 months before I have any rental income coming in!
Ironically, this is the secret weapon of building from scratch for the investor. By building, you’re going through a process that many competing buyers simply don’t have the financial means or housing circumstances to entertain.
As an investor, you’re in the unique position whereby you can patiently build the perfect home to suit the frenzied home buyer market without competing with them at open homes and auctions as you would when trying to buy an established property.
It’s the best of both worlds. You can ride the coattails of the owner occs to get the capital growth, without going head-to-head with them when buying.
How do I solve the issue of zero rent whilst the property is being constructed?
With some simple fiscal planning along the way, the net overall cost of building is pretty much exactly the same as buying established. In a nutshell, when building from scratch you only pay stamp duty on the land, and not the cost of construction.
So, for the average new build property, this means that stamp duty will be around half the cost of an established property purchase of equal value.
In other words, you’ve saved on paying half the cost of stamp duty by building new. This saving is no small amount either, we’re talking upwards of $15,000 here. So, by redeploying this stamp duty saving to cover the cost of loan repayments during construction, you’re essentially in the same position that you would be had you bought established.
What if I choose the wrong builder and they go bust?
Just like any property purchase, there is a certain degree of non-negotiable due diligence and research that needs to be done before committing.
Obviously, the builder falls into this category and fortunately there are plenty of ways to get the critical intel and verify that the builder is one that you can put your utmost trust in.
Any builder that we put forward will be supported by the findings of our independent assessment and one with sufficient Home Building Compensation Fund (HBCF) insurance for the project just in case, too.
That said, this freedom of choice is one of the biggest strengths of deciding to build in the first place.
You get to choose exactly who will be behind and responsible for the creation of your precious investment asset.
You can go in with confidence being fully across all important aspects such as delivery times, construction materials, the builder’s quality control process, design features, standard of inclusions, and upgrade options, etc.
Doesn’t building new mean that I’m paying a premium for the property?
Well, to us, one of the main points of building new is to end up with a superior product than you can find on the open second-hand property market, and doing so in a much more controlled environment away from the pressures of trying to negotiate a deal against emotionally driven buyers.
And with the majority of growth markets throughout the country overrun with over-zealous owner occupier buyers, couple this with low listing numbers due to dwindling housing supply, and sadly the status quo means it’s a case of ‘good luck’ finding any established property gems in a good location at a decent price.
Building turns this frustrating situation on its head and enables the investor to take complete control of what they’re buying and caps the price they need to pay for it.
Does construction always take a long time? I don’t want to wait a year.
We understand that, but a couple of things to keep in mind.
Firstly, building a new home doesn’t have to take forever.
Sure, finding an excellent block of land that meets the criteria can take time, but the construction process can take as little as just six to eight months.
Secondly, there are certainly no guarantees that finding and successfully securing an established property that ticks each and every box will take less time than the build process.
When buying established, you’re entirely dependent on unrelated third parties wanting to sell homes that you deem worthy to buy and if they’re just not becoming available there’s little you can do about it.
Not to mention false starts due to being outbid or even failed building and pest inspections.
Building from scratch, however, provides a much more definitive timeframe and ultimately more control for the buyer by removing any need to compromise on criteria nor reliance on the current stock pool of the established property market.
Is there more opportunity for things to go wrong with a new build?
We have reviewed literally hundreds upon hundreds of building and pest inspection reports over the years, along with ones from structural engineers on occasion too, trust us when we say that established properties are by no means clear cut when it comes to trying to figure out what may be lurking beyond the surface.
Not to mention that when you’re buying an established property, you’re inheriting a collection of materials, fixtures, fittings, and appliances all at varying degrees of their ‘shelf life’.
Building from scratch, on the other hand, means that everything is brand new.
The property will be covered by a six-year structural warranty with all appliances and many fixtures and fittings covered, too.
In turn, the likelihood of immediate maintenance costs on the property are significantly minimised, greatly reducing cash-flow risk.
Furthermore, building from scratch provides an opportunity for the property to be independently checked at each key construction milestone along the way – slab, frame, internal plumbing and wiring, roof cavities, termite barriers, etc. can all be inspected and verified as sound without physical obstruction.
This offers a degree of long-term peace of mind that an established property just can’t match.
That’s where we come in.
As we have done in the past with any recommendations for established property purchases, we apply the same philosophy to a new build.
We facilitate all required research and analysis to provide expert guidance on every aspect of the build, including builder selection, construction contract terms, pricing provisions, floor plan, façade, inclusions, upgrades, colour selections and landscaping. We help you understand exactly what you’re signing and identify any areas where additional costs may arise before you commit.
We will project manage the process from start to finish and keep everything on track for you.
Investing in property, using adviseable
Call us for an introductory chat (no obligation or hard sell – We promise!). From there, depending on your needs we can also put you in touch with an independent financial professional who can help get you set up for property purchase.
I’m not sure I can purchase an investment property. How do I find out?
Call us for an introductory chat (no obligation or hard sell – We promise!). From there, depending on your needs we can also put you in touch with an independent financial professional who can help get you set up for property purchase.
I’m not sure if I should buy a home to live in or for investment? Can you help?
Yes! We have a lot of experience answering this question so we can certainly steer you in the right direction. So whether you’re thinking about buying a primary place of residence (PPOR), a property purely for investment, or even something with a mixture of both purposes, contact us for some guidance and insight.
Can Adviseable help buy an investment property for my self-managed super-fund (SMSF)?
It’s possible, but quite restricted. If you’re using a Limited Recourse Borrowing Arrangement (LRBA)—the standard borrowing method for SMSFs—you generally can’t do separate land and build contracts. Instead, you’d need a single ‘turnkey’ or off-the-plan contract that wraps both into one. This limits your builder options, reduces customisation, and usually results in a premium price. On top of that, SMSFs attract higher borrowing costs, offer less tax benefit from depreciation, and require ongoing regulatory compliance. It’s essential to speak with your financial adviser or SMSF specialist before proceeding. Building within an SMSF structure really does alter the value proposition, and in many cases, it’s not the most effective or flexible approach.
What’s the difference between a Buyer’s Agent and a Selling Agent?
A selling agent is appointed and paid by the seller to represent them during the sale of their property. During this time, the selling agent has a professional obligation to act in the best interests of their seller client and in turn strives to achieve the most favourable outcome possible for them. On the other side of the transaction, a buyer’s agent is appointed and paid by a property buyer whom they represent throughout the property purchase process. A buyer’s agent also follows a professional code of conduct, and their mission is to get the best results possible for their buyer client.
Why should I use an Adviseable buyer’s agent when I could do it myself?
When you engage an Adviseable Buyer’s Agent, you’re also accessing an in-house team of full-time advisors and researchers who collectively have decades of experience buying and building properties throughout Australia. So you’ll be able to leverage off our combined expertise, resources, relationships, and efforts to ensure that you’re getting the best opportunities available in the marketplace and achieving professional results in the process.
Our mission is to ensure that you achieve the absolute best results possible, and our team takes this aspect very seriously and works very hard accordingly. Our personalised and supportive approach will accommodate your every need, save you hours and hours of time, give you 100% independent advice and assists you throughout months of the build process. With that in mind, the financial commitment of the Adviseable fee for service model is great value considering the long-term financial benefit and peace of mind of a successful property purchase and build experience.
Conversely, following poor advice from elsewhere and buying and building the wrong property or even just missing out can be a very costly mistake.
What assurance do I have that Adviseable will act to get the best results possible for me?
We genuinely care about achieving the best possible results for our clients, and as a result our business thrives almost solely as a result of repeat business and client referrals. On this basis, we have a vested interest in helping you succeed so that you’ll come back again and again and also refer your family, friends, and colleagues our way. We like to think that the client testimonials we receive speak for themselves!
Does Adviseable charge a fixed fee?
Sometimes yes—but not always. In many cases, our New Build Property Service is builder-funded, meaning there’s no direct cost to you. Where builders don’t offer referral arrangements, we operate on a clear fixed-fee model, agreed upfront. Either way, it’s totally transparent and we’ll always act in your best interest and try to confirm the fee structure before you commit — no surprises, ever.
Can Adviseable help me decide where to buy?
Yes! An integral part of our expertise and service is having a comprehensive understanding of the property markets throughout Australia and conducting research to identify the top growth areas. Naturally this research is shared with our investor and home buyer clients and forms the basis of any personalised area recommendations that we provide.
Does Adviseable focus on a capital growth or a cash-flow centric property investment strategy?
We certainly don’t adhere to a ‘one size fits all’ approach, we tailor each area recommendation and property search to the specific needs of the individual investor with both cash-flow and capital growth criteria being considered. That said, we will always focus on strong capital growth as the fundamental objective for any purchase.
I am looking to build a diverse, multi-property portfolio, can Adviseable help?
Yes! Our team is equipped with the expertise and know-how to enable our investor clients to build a well-rounded and profitable property investment portfolio, whether that is to comprise of a few properties or a few dozen!
What methodology or process does Adviseable follow when researching areas and properties?
During our area research and selection process, we analyse 10 key aspects of an area to determine whether it meets our strict criteria. We refer to this list of qualifying criteria as our ‘Area Top 10’. As for our property specific due-diligence and selection process, we conduct a 40+ point evaluation as the basis for our property assessment.
Does Adviseable offer a part-service such as advice only or bidding at auction?
Partly. We don’t offer one-off services like bidding at auction or assisting with the purchase of a specific property you’ve found. However, we do offer a standalone strategic advice service through our Location Guidance & Strategy options. These are ideal if you want tailored, independent advice on where and what to buy, without full end-to-end support. If you’re looking for an expert plan before diving into the market—or a shortlist of investment-grade locations based on your goals—we’d be happy to help. And of course we can help you build brand new in great growth lcoations.
Does Adviseable get access to off-market property listings?
Yes! As one of our essential skills as buyer’s agents is to sniff out the top opportunities ahead of the pack, we often get access to fantastic off-market options for our investor clients.
Is the Adviseable fee tax-deductible when buying an investment property?
For the final word on the matter you should always consult with your tax accountant, however as our fee is typically considered part of the ‘cost base’ for investment property purchase it can often contribute to offsetting tax liability upon sale.
Can the Adviseable fee be paid for with borrowed funds?
Please consult your financial professional for specific advice here. However assuming that the investor has an equity loan facility available and it’s in line with their financial strategy to do so, there shouldn’t be any reason to prevent them from using these borrowed funds to pay this fee.
Is Adviseable a member of any industry associations or regulatory bodies?
Yes! We’re big proponents of industry regulation to maintain high professional standards and most importantly promote consumer protection. As such, we’re active and in some cases voluntary members of a number of industry associations including; Property Investment Professionals of Australia (PIPA), the Real Estate Institutes, and Real Estate Buyers Agents Association of Australia (REBAA).
Does Adviseable help with finding and engaging a property manager?
Yes! Although there’s no obligation to use anyone that we recommend, part of our service includes putting forward pre-vetted referrals to the key professionals required to keep the investor safe and ensure that the property purchase is as successful as possible.
I am interested in building a brand new property. Can Adviseable help with this?
Yes! Our team has vast experience with building new homes from scratch and we can oversee the entire construction project from initial site acquisition right through to tenancy. You’ll receive comprehensive advice, research, due-diligence & market appraisal, negotiation skills, third-party professional recommendations, support & communication, and legwork from us. Furthermore, of course it goes without saying that our ethos around being independent, unbiased, and entirely transparent regarding fees, apply to this model too.
Does Adviseable sell properties?
No, Adviseable does not sell properties. We only help them through the process of constructing brand new ones from scratch. Our mission at all times is to put our buyer clients on the profitable side of the purchase equation.
Still have questions?
We’d love to answer them! Simply contact us to for an obligation-free chat.
