Hickinbotham news
Display Home a sound investment
Northern Argus
Wednesday, May 13, 2009
Property investors wanting an investment that has performed well historically in these uncertain economic times should consider buying a display home.
South Australia’s leading home builder, Hickinbotham, has several display homes currently for sale, with investors able to lease the home back to the company for up to five years.
Hickinbotham Managing Director Michael Hickinbotham said buying a display home was a sensible option for property investors, particularly first-time investors who wanted a secure way of entering the market.
“The benefits of buying a display home are considerable – investors get a reliable, long-term tenant and a well-established quality home,” he said.
“And Hickinbotham offers a seven per cent annual return, zero vacancy risk and long-term leases with renewal options.”
Display homes are available in sought-after locations throughout metropolitan Adelaide and regional South Australia, and homes are decorated by a professional interior designer with the latest colours, textures and finishes.
All display homes are fully furnished (with furniture included at no charge) and landscaped, and Hickinbotham does all the maintenance on the property during the lease period, which means the house and garden are returned to the investor at the end of the lease in outstanding condition.
According to Mr Hickinbotham, property investment in general has many tax advantages, such as negative gearing.
“Despite economic slowdowns, the experience of Australian capital cities over the last 100 years is that residential property has shown strong capital growth, which has made the purchase of a home a sensible long-term investment for many people,” he said.
“When properly applied, negative gearing can be an effective way of minimising your taxation obligations and creating future wealth for your family.
“This is because the Australian Taxation Office (ATO) allows property investors to offset an income loss incurred on a real estate investment against any other income.”
The types of expenses that can be claimed include interest on the loan and bank fees, agent’s fees, council fees, advertising charges, cleaning expenses, utilities like gas and water, gardening expenses and insurance. Furniture, carpets and other items within the home can be depreciated gaining tax advantages.
“Like most things in life, negative gearing does have it risks. Most experts agree that the key to a successful negative gearing strategy is to ensure you find the right investment property.”
One investor who has reaped the benefits of buying a Hickinbotham display home is Romi Dimasi, who recently sold her Hickinbotham display home at Seaford Rise after it come to the end of its lease.
Romi says buying the home was an excellent opportunity to enter into a new development at the early stages.
“Generally, these homes increase in value as the area develops,” she said.
“It was an easy investment to be involved in as the lease arrangements are very good and the home, to a certain extent, pays for itself.
“It is well maintained and at the end of the lease you are virtually the owner of a brand new home with many extra features.
“I am considering purchasing another display home in the near future as I see it as an easy-to-maintain type of investment.”
For more information about which Display Homes are currently available for purchase, please visit www.displayhomes4sale.com.au or phone (08) 8366 0000.
Hickinbotham suggests that anyone considering property investment seek the advice of an independent, professional financial advisor.
South Australia’s leading home builder, Hickinbotham, has several display homes currently for sale, with investors able to lease the home back to the company for up to five years.
Hickinbotham Managing Director Michael Hickinbotham said buying a display home was a sensible option for property investors, particularly first-time investors who wanted a secure way of entering the market.
“The benefits of buying a display home are considerable – investors get a reliable, long-term tenant and a well-established quality home,” he said.
“And Hickinbotham offers a seven per cent annual return, zero vacancy risk and long-term leases with renewal options.”
Display homes are available in sought-after locations throughout metropolitan Adelaide and regional South Australia, and homes are decorated by a professional interior designer with the latest colours, textures and finishes.
All display homes are fully furnished (with furniture included at no charge) and landscaped, and Hickinbotham does all the maintenance on the property during the lease period, which means the house and garden are returned to the investor at the end of the lease in outstanding condition.
According to Mr Hickinbotham, property investment in general has many tax advantages, such as negative gearing.
“Despite economic slowdowns, the experience of Australian capital cities over the last 100 years is that residential property has shown strong capital growth, which has made the purchase of a home a sensible long-term investment for many people,” he said.
“When properly applied, negative gearing can be an effective way of minimising your taxation obligations and creating future wealth for your family.
“This is because the Australian Taxation Office (ATO) allows property investors to offset an income loss incurred on a real estate investment against any other income.”
The types of expenses that can be claimed include interest on the loan and bank fees, agent’s fees, council fees, advertising charges, cleaning expenses, utilities like gas and water, gardening expenses and insurance. Furniture, carpets and other items within the home can be depreciated gaining tax advantages.
“Like most things in life, negative gearing does have it risks. Most experts agree that the key to a successful negative gearing strategy is to ensure you find the right investment property.”
One investor who has reaped the benefits of buying a Hickinbotham display home is Romi Dimasi, who recently sold her Hickinbotham display home at Seaford Rise after it come to the end of its lease.
Romi says buying the home was an excellent opportunity to enter into a new development at the early stages.
“Generally, these homes increase in value as the area develops,” she said.
“It was an easy investment to be involved in as the lease arrangements are very good and the home, to a certain extent, pays for itself.
“It is well maintained and at the end of the lease you are virtually the owner of a brand new home with many extra features.
“I am considering purchasing another display home in the near future as I see it as an easy-to-maintain type of investment.”
For more information about which Display Homes are currently available for purchase, please visit www.displayhomes4sale.com.au or phone (08) 8366 0000.
Hickinbotham suggests that anyone considering property investment seek the advice of an independent, professional financial advisor.
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