Why New Builds Have Become the Smart Choice for Property Investors

Why New Builds Have Become the Smart Choice for Property Investors

For years, Australian property investors have weighed up one big question: Should I buy an established property or build new?

Following the Federal Budget's proposed changes to negative gearing and capital gains tax (CGT), that question has become even more important.

If you're considering purchasing an investment property, building a new home may offer advantages that established properties no longer do.

What's Changing?

The Federal Government has announced reforms designed to encourage investment in new housing supply.

Under the proposed rules:

• Investors who purchase newly built homes will continue to have access to negative gearing.
• Investors purchasing many established homes after the announced commencement date will be subject to the new restrictions.

The reforms are intended to direct more investment towards building new homes rather than competing for existing housing stock.

Why This Matters for Investors

Tax outcomes should never be the only reason to buy an investment property, but they can influence the long-term financial performance of your investment.

For investors, the reforms mean that new homes remain eligible for tax treatment that may no longer apply to many established properties purchased under the new rules.

This places new builds in a stronger position for many buyers considering their next investment.

More Than Just Tax Benefits

While the Budget changes have attracted plenty of attention, there are several reasons investors continue to choose new homes.

Lower maintenance costs

Everything is brand new—from the roof to the appliances—meaning fewer unexpected repairs in the early years of ownership.

Strong tenant appeal

Modern layouts, open-plan living, energy-efficient features and contemporary finishes are highly sought after by today's renters.

Depreciation opportunities

Because everything is new, investors may be able to claim depreciation on eligible building components and fixtures, potentially improving after-tax returns. (Always seek advice from a qualified tax professional.)

Builder warranties

Building new also provides peace of mind, with statutory warranties covering key structural elements.

Why Timing Matters

As investment preferences shift towards new housing, demand for quality new homes may continue to strengthen.

Investors who purchase early may benefit from:

• A wider choice of land and home designs.
• Access to current builder promotions.
• The ability to build a property that meets today's renter expectations.
• Continued eligibility for the proposed tax settings available to qualifying new builds.

What Does This Mean for Domaine Homes Investors?

Whether you're purchasing your first investment property or expanding your portfolio, building new offers several advantages.

With Domaine Homes you can choose from a range of modern home designs that appeal to today's tenants, including:

• Single-storey homes
• Double-storey family homes
• House and land packages
• Investor-friendly floorplans designed for broad market appeal

Combined with fixed-price building contracts and energy-efficient inclusions, building new can provide greater certainty throughout the construction process.

Frequently Asked Questions

Can investors still negatively gear a new build?

Under the Federal Government's proposed reforms, eligible newly built homes can continue to access negative gearing arrangements, while restrictions are proposed for many established residential properties purchased after the relevant commencement date.

What qualifies as a new build?

Generally, a new build is a residential property that adds to Australia's housing supply, such as a home constructed on vacant land or a qualifying development that creates additional dwellings.

Are the capital gains tax changes the same for new builds?

The Budget also proposes changes to capital gains tax from 1 July 2027. Under the announced reforms, investors in eligible new builds may have different treatment available compared with other residential property investments. Because CGT can be complex, investors should seek advice tailored to their personal circumstances.

Build an Investment Property Designed for Tomorrow

The property investment landscape is evolving, and for many Australians, building new has never been more compelling.

With modern designs, lower maintenance, strong tenant appeal and proposed tax settings that continue to support investment in new housing, now is an ideal time to explore your options.

Whether you're a first-time investor or growing your portfolio, the Domaine Homes team can help you find a home design that suits your investment goals.

Speak with our team today to discover our latest investor-friendly home designs and house and land opportunities.

*The information in this article is general in nature and is based on current Federal Government announcements. It does not constitute financial or tax advice. Tax laws and government policies may change. We recommend speaking with a qualified accountant or financial adviser before making any investment decisions.