Usually, this newsletter is all about property, lending and investment strategy, but this week I wanted to share something a little different.
In March 2026 I’ll be taking part in the Chain Reaction Brisbane Challenge, a seven-day charity cycling event covering roughly 1,000km across New Zealand’s North Island. The ride brings together business leaders from around Australia to raise funds for children who need it most, supporting two incredible organisations: the AEIOU Foundation, helping children with autism access early intervention programs, and The Prince Charles Hospital Foundation, which supports critical treatment and care for sick and injured children.
The cycling itself will certainly be a challenge (especially around day five), but the real goal is to raise funds that make a meaningful difference for these kids and their families. I’m aiming to raise as much as possible and would be incredibly grateful for any support, big or small.
If you’d like to contribute, you can donate here: Make A Donation
Events like this also remind you how important long-term thinking and planning can be — something that applies just as much in property investing. Recently, we’ve been having more conversations with clients about building investment properties, particularly here in Victoria, as established home prices continue to climb. So this week we’re taking a closer look at the fundamentals of building versus buying, and why house-and-land packages can make sense for the right investor.
If you’ve been thinking about property investment, you’ve probably asked the same question most people do: Should I buy established, or build something new?
With the price of established homes continuing to rise, building is becoming a more common conversation. When done right, purchasing a house-and-land package can be an effective way to build long-term wealth through property.
A brand-new home typically comes with warranties, lower maintenance in the early years and features that appeal strongly to modern tenants, such as energy-efficient heating and cooling, better insulation and layouts designed for contemporary living. That combination can help support strong rental demand and longer tenancies.
One of the key financial advantages of building new is depreciation. The Australian Taxation Office allows investors to claim deductions for the wear and tear on an investment property over time, and new builds generally offer stronger depreciation benefits than established homes, particularly in the early years. These deductions come from two main areas: capital works, which covers the structure of the building and is generally claimable over 40 years, and plant and equipment, such as appliances, carpets and air-conditioning units, which depreciate more quickly.
Building vs Buying Established
Another benefit investors sometimes overlook in Victoria is how stamp duty is calculated. When land is purchased first, and a construction contract follows, duty is generally assessed on the land value only, rather than the value of the completed property. Compared with buying an established home at the same end value, this can represent a meaningful upfront saving.
Of course, building also comes with a few practical considerations. During construction, the property isn’t producing rental income, but expenses like loan repayments, council rates and insurance still apply. Financing also works a little differently, with lenders releasing funds progressively as construction milestones are completed rather than providing the full loan amount upfront.
For many investors, building can be a way to add a modern, low-maintenance property to a portfolio while taking advantage of depreciation and the demand for new housing. Like most property decisions, though, the strategy tends to work best when it’s approached with a long-term mindset and a clear understanding of the costs involved along the way.
Variable
The rates below are based on a $500,000 loan, with the borrower making principle and interest payments with a loan term of 30 years. The rates quoted may vary depending on the borrowers LVR.
1 Year Fixed
The rates below are based on a $500,000 loan, with the borrower making principle and interest payments with a loan term of 30 years. The rates quoted may vary depending on the borrowers LVR. At the end of the three year fixed period, the borrowers interest rate will revert to a standard variable rate for the life of the loan.
