- Scarcity of good land
Well located properties that are suitable for demolition and building a new house are already in very short supply and are rapidly increasing in price. So, if you already own such a property, it is important for you to make the most of its potential.
- Maximize your properties potential
Designing and building a new house is possibly the best way to maximize a properties potential to grow in value. However, the key to unlocking a properties potential is to create the best possible design by using “timeless architecture”, the latest building techniques and technology and the best quality of building.
- Future proof your house
If your property is going to continue to grow in value in the long term, it must be “future proof”. This can be achieved by using an architectural design that will not date, i.e. avoiding using trend materials and details and finishes that age and deteriorate with time. At DDB, we design houses with clean simple lines and use high quality materials that look as good in 15 years as they did when they were first finished.
- An investment in family and lifestyle
Designing and building a new house can be a life changing event for the whole family and will open up a new lifestyle for your family and friends. However, this will require a significant investment that must be managed correctly.
So, I would recommend that you read the following DDB articles:
No. 1 “How do I choose the right architect?”
No. 2 “What are the five 'must have' designs features for a new home?”
No. 4 “How do I choose the right builder?”
- Tax Free Capital Gain
Conventional wisdom is that only land increases in value over time and the building decreased in value over time. However, our experience is that the right new house can substantially increase a properties capital gain well above the gain in land value. For example, a new DDB house in Armadale Victoria completed approx. 4 years ago increased in value by 15% per year and then sold for a record $1.6 million dollars over the vendor’s reserve price. As a “principle place of residence” all this capital gain is tax free.
- Invest in great architecture
Unlike most high value purchases (i.e. cars, furniture, sports equipment etc) that reduces in value as soon as you buy and use it; a beautifully executed new house goes up in value substantially as soon as it is finished. For this to happen you must invest in great architecture like investing in great art, great architecture can be an excellent long-term investment. New DDB homes are often valued substantially above the total cost of the land, building and landscaping
- Multiply your capital gain
The same principle of maximizing your capital gain by investing in great architecture applies to dual occupancy developments where there is the added upside of “economy of scale”. The per square meter building cost for two town houses is less than for a single new house. Also, the overall property value is increased due to sub-dividing the land. (The land value of two 300M² blocks is usually significantly higher than the value of one 600M² block.)
- Set a real estate sales record
“New homes in great locations with innovative design and architectural integrity often set real estate records when they are sold.”