Country or coastal?

When choosing a location for a holiday letting the investment property builder should think about which will offer the best Return on Investment. When calculating your ROI, consider the entry price of land versus the potential nightly rate. 

While coastal properties offer the summer boom they can suffer ‘ghost town’ syndrome in the winter and the land entry price is typically much higher which can compress your rental return. With this in mind, focus on purchasing land in high-demand tourist areas within a 2-hour drive of a CBD for your holiday rental  — like the Hunter Valley. 

The Hunter Valley, with its world class wineries and year-round wedding industry, offers a constant flow of tourists. Land is often more affordable than coastal strips, allowing for a better ROI when you factor in the high demand for premium holiday rental accommodation near the vineyards. 

There is less seasonal volatility in the Hunter Valley as opposed to a coastal investment because there is something to do all year round from the Spring Festival of Flowers and the lure of hot air ballooning to the Summer harvest time and outdoor concerts. Autumnal vine leaves ablaze with colours and cool Winter months are perfect for cosy fires, fewer crowds and the Winter Wine Festival. There is definitely a growing demand for more diverse options other than resorts so maybe it’s time to build an investment property in the Hunter Valley?

Financing your build

While it can be a fun and exciting venture, a successful holiday letting requires a serious investment property strategy. The way you intend to use the property significantly impacts your borrowing power. If the bank views the project as a commercial enterprise – especially if it falls under ‘tourist accommodation’ – it may require a commercial loan which demands a higher deposit (often 30% or more). If you can secure an investment or residential loan, you might get away with a 10% or 20% deposit.

Looking ahead, it’s worth keeping in mind the tax implications of your investment. If you sell within 12 months of purchase, the full Capital Gains Tax is added to your income, with no discount. Whereas by holding the asset for more than 12 months, you are generally eligible for a 50% CGT discount, meaning only half of the capital gain is added to your taxable income.

Ongoing costs

A short term holiday rental is an active business not a passive investment. As a property developer, you need to decide whether you manage the day to day running of your holiday letting or if you should hire a specialist firm. The advantage of DIY management is that you keep 100% but you also take on 24/7 guest communication, cleaning coordination and maintenance. The pressure is on you to ensure that five star rating for your AirBnB.

If you choose to outsource the management of your holiday letting you should expect to pay between 15% and 25% of your gross revenue. However a good manager deals with the operational stress, and should optimise your listing to ensure the desired rental return.

Consider local council requirements

When you build an investment property intended for holiday letting, you face a critical choice in how you categorise the build. Submitting the Development Application as tourist accommodation can be a lengthy process because council considers it the same as a hotel. This means even a small dwelling may be required to meet commercial-grade safety standards including disability access and specific parking ratios. 

A property developer may prefer to submit the DA as a dual occupancy or a single dwelling investment. While this is often a quicker approval process, it’s important to check local zoning laws. Some councils have strict caps on how many days a residential property can be used for short term holiday rental before it requires change of use.

When you’re ready

While we encourage any property developer to build an investment  property for short-term holiday rental or holiday letting, the advice supplied here is general in nature. It’s wise to speak with a financial advisor or tax agent for further guidance regarding your specific situation as well as consult the relevant council for local planning and building requirements. 

If you’re certain about your investment property strategy and you’re looking for a Hunter Valley builder, call Valley Homes. With over 50 years of experience in the building industry, Valley Homes is the investment property builder to help make your holiday rental vision a reality. Call us today.

Please Note: the contents of this article are general in nature and do not constitute financial advice – consult the relevant council and your financial advisor or tax agent for further advice as it relates to your specific situation.

First Home Guarantee incentive for new builds for first home buyers

Normally, home buyers need a deposit of 20% of the property value to get a home loan, and those with a smaller deposit may require Lenders Mortgage Insurance (LMI) but from 1st October 2025 the Albanese Government brings forward the start date of the First Home Guarantee. This is a game-changer for those seeking a home loan for a first home build.

Under the First Home Guarantee Scheme, Housing Australia provides a guarantee to the lender, so home buyers only need a 2% or 5% deposit (depending on the type of Guarantee). This will help home buyers to buy a home sooner, with lower upfront costs. Key eligibility criteria includes:

• a taxable income at or below $125,000 for individuals or a combined $200,000 for joint applicants 
• you must be a first home buyer or have not owned a property in Australia in the last 10 years (applies to both in a joint application)
• you must buy or build a home to live in (investment properties are not eligible)

Explore the three different Guarantees on the Home Guarantee Comparisons Table or check your eligibility through the Housing Australia website using their Eligibility Tool.

If you’re in NSW, there’s more…

To help you build your first home you may also be entitled to apply for the NSW Government’s First Home Owner Grant (FHOG) – a $10,000 grant available when you buy or build your first new home. 

This grant is not applicable for established houses, unless:

• most of the home was removed or replaced
• the seller, builder or a tenant has not lived in the home prior to, during or after renovations
• it is the first time the home has been sold since completion of renovations.

Your first new home can be a house, townhouse, apartment, unit or similar that is newly built, purchased off the plan or substantially renovated.

There are conditions for eligibility including:

• you must be a first home buyer as a person, not as a company or trust; 
• you or your spouse, partner or co-purchaser must not have previously owned a home before 1 July 2000; 
• the purchase price of a new home must not exceed $600,000
• whether you’re a owner builder or you choose a Comprehensive home building contract, the property value (house and land) must not exceed $750,000
• you or your spouse must not have previously received a First Home Owner Grant in Australia. So too if you owned a home or other residential property in Australia, either jointly or separately, before 1 July 2000

Why it makes sense to build your first home

While it can seem monumental to build your first home now is the perfect time to consider this option. With these government incentives available, the years of paying rent while saving for that deposit are reduced and funds can be funnelled straight into mortgage repayments. Upfront costs are also decreased with waived mortgage lenders insurance. Remember, your new home doesn’t have to be a three bedroom house. A townhouse or unit can be a great entry into the housing market.

Good news for investors

While investors are not eligible to apply for the Australian Government 5% deposit scheme, the good news is that there will be an increased number of buyers seeking house and land packages up to $750,000 and homes up to the value of $600,000. Savvy investors and developers will be also looking to build duplexes and multi-unit dwellings to offer eager first home buyers. With housing affordability a major issue, a variety of dwellings are in demand.

Choosing a new home builder

Whatever your property development plan you need a new home builder who has the experience and expertise to give you strong confidence in undertaking a new build. With the belief that great design should be affordable for everyone Valley Homes offers an economical range of designs suitable for the investors or first home buyer. These can be built off the plan or customised to best suit your block.

Whether you’re a first home buyer or investor these incentives provide a unique opportunity to build a new home in NSW. Valley Homes is ready when you are. Call us today.

Tallowood

Planning and pre-construction on Tallowood began in 2017 and momentum increased with construction into 2020 as 80 homes were soon ready for sale. Fast forward to 2025 where 17 houses are now being constructed as part of Stage 7. Pre-construction phase of Stage 8 (the final stage) has begun and construction is scheduled to commence on site in August 2025. The completion of all stages by mid-2026 will see a total of 200 houses. With an increasing demand for property developments to meet the needs of an aging population eager to downsize for retirement, there is good reason for property developers to consider building with the over 55s community in mind.

Superior resort living

Most retirees seeking over 55’s living envisage a retirement lifestyle that includes being part of a social and active community while also offering the option of quiet spaces to relax – so it makes sense that their environment reflects that. Tallowood has been designed to ensure broad appeal with communal spaces that are conducive to relaxing as well as enjoyable social opportunities with a cinema room, bar, games room, lounge and dining areas.

There’s a fire pit to savour mulled wine or hot chocolate under the stars. On wet and windy days there’s an indoor fire to get cosy with a book or enjoy board games or conversation with friends. Designed to offer an effortless country club lifestyle, Tallowood is a place to connect and build new friendships, with many studies suggesting that a sense of belonging contributes to well-being which is a crucial element to a healthy retirement.

Healthy lifestyle

The variety of facilities at Tallowood also incentivises residents to be physically active. There’s something for everyone from the shaded bowling green to the tennis court to fishing at the lake. The wellness centre features both indoor and outdoor pools, a sauna and a spa. Everything is tailored for the over 55s community’s needs and interests – even the gym is equipped with pneumatic technology for safer resistance training!

Connected to nature

With bushland on the doorstep and parkland all around, Tallowood is designed to allow residents to feel connected to nature. Under wide open skies, Medowie is within close proximity to the Port Stephens coastline for beach walks and a dip in the Pacific Ocean.

Ideal location

Tallowood residents have the opportunity to enjoy a convenient lifestyle with access to shopping, healthcare and travel while also experiencing the security and tranquility of a gated community surrounded by nature.

Medowie’s local supermarkets, along with a selection of specialty stores and medical centres are only a short stroll. But for further needs, Port Stephens and Newcastle are a mere 30 mins drive – and for those planning on traveling interstate or abroad, the Newcastle Airport is only 15 minutes drive away. Location has certainly been a contributing factor in the successful sale of these homes.

Designed and built to satisfy

Tallowood has been meticulously planned to meet the needs of its community. The architecture of the communal buildings takes advantage of the view and amenities are fully accessible. 

Further to this, each home is set on one level and is designed to maximise space and natural light. There are a range of functional floor plans to choose from that ensure a sense of flow from the front door through to the open plan kitchen-living room. Throughout the home there are quality finishes and appliances as well as plenty of storage.

The high ceilings, timber flooring, alfresco area and generous sized bedrooms with built-in robes are all features that create a sense of spaciousness while the home’s compact nature reduces the stress of maintenance. These homes are perfect for buyers looking to downsize for retirement.

A reputation matched by construction excellence

Valley Homes is the proud Port Stephens builder bringing to life the Tallowood Medowie vision. Having worked with Defence Housing Australia and Property Bloom Pty Ltd, large scale development has long been a key feature of the Valley Homes portfolio.

Working within budget and on time, Valley Homes is the construction company that developers seek out to ensure their plans come to fruition successfully.

Tallowood is a great example of Valley Homes’ building excellence – if you’re a property developer considering a large-scale development in the Newcastle and Port Stephens region, contact us today to find out more.

Colours to reflect the theme

For further inspiration to build upon the notion of a safe and cosy home, the Taubmans Colour Forecast has pitched four palettes to provide a backdrop of comfort while still offering a splash of colour. Each palette encourages different styles and unexpected colour combinations allowing your individuality to shine through.

‘Composure’ is all about rest and relaxation. Perfectly described as “soft yet fun, sophisticated without being clinical.” Think light earthy tones paired with natural stone and timbers of different shades.

The ‘Grounded’ palette includes warm olive greens and dusty blues. This scheme invites you to imagine ‘an escape at home’ and sits well with the biophilic trends of recent years, to “bring a sense of nature into your space” further enhancing indoor-outdoor living. 

The third palette, ‘Centred’, is all about ensuring a state of calm with soothing variations of white and cream. It offers the perfect antidote to our busy lifestyles allowing you to create a haven of tranquillity.

‘Euphoric’ is the fourth palette and encourages the big bold statement while still contributing to the cosiness of your home. Inspired by the maximalism trend, the Euphoric range is about boldness in colours, patterns and textures.

Sustainable greens

Another area in which functionality and sustainability can flourish is landscape and garden design. 

The big trends  here are edible gardens – from large herb pots to vertical gardens for growing salads and micro herbs.

Drought proof plants, hardy natives and pollinators to encourage native bees are also popular garden approaches for the year ahead.

A home builder to support your vision

Ultimately, whatever inspires your new building design, you want it to reflect your own personal taste so that you can truly feel at home. Which is precisely why it’s important to select a builder capable of offering custom home design to suit your specific needs and desires. Hunter Valley builder, Valley Homes, has been designing and constructing homes from Port Stephens to Newcastle with their expertise and craftsmanship achieved from over 50 years in the industry. If you can dream it, Valley Homes can build it – call us today find out how.

Big sky dreaming: the beauty of building on acreage

At number four, this article’s popularity confirmed people’s desire to reconnect with nature. We headed inland to the Hunter Valley, in beautiful Regional New South Wales, looking at townships from Singleton to Maitland. We explored the many reasons to build an acreage home in this area and why it could suit anyone from the early retiree seeking a tree-change to the growing family looking for the benefits of a rural lifestyle. 

As a Hunter Valley builder,Valley Homes is a respected acreage builder. Not only has our design team created a great range of acreage house plans but we’ve had many satisfying collaborations with customers creating the dream home that they’ve longed for. Whether it’s country style or contemporary the Valley Homes team can customise our acreage house plans so that your new home construction is uniquely yours.

Over the holiday break, take a drive through the Hunter Valley, enjoy the serenity — and keep an eye out for that ideal block of land.

And our #1 story of the year is…

Shoreline Villas: Where Lifestyle Meets Demand

Appealing to those keen to build an investment property or make a lifestyle change our number one article celebrates the Tea Gardens community and beautiful environment confirming it’s a great place to live as well as an area of growth. 

Valley Homes was the chosen Port Stephens builder of property developer, Sheargold for their multi unit development, Shoreline Villas and they’ve proven to be a winning team with  

Shoreline Villas set to be entered into the next HIA Awards – under the Multiple Dwelling Category. 

Sales uptake on these homes confirmed that there’s a demand for more Port Stephens  developments and Valley Homes is ready to collaborate with like minded property developers.

Holiday dreaming

Take time out to imagine the possibilities – whether it’s a new home build or investment property plan for 2024 – get in touch, we’d love to help build those dreams into a reality.

As we wind down to Christmas we want to say a huge thank you for reading and building with us this year, wishing you a happy and peaceful festive season and beyond!

The many possibilities

If you’re keen to build an investment property as either a first-time or experienced property investor, a duplex is a great option to consider. If generating investment income is your focus a duplex offers double your rental income earning potential when you choose to rent out both units.

For the first time buyer, a duplex allows you to build to live in one dwelling while renting out the second to achieve an ongoing return. The other choice is to sell the second dwelling after a period of time to create cash flow or reduce the mortgage of the unit you live in.

If you build a Torrens title duplex, you’re effectively subdividing your single block into 2 separate lots with separate services therefore increasing the value of your investment immediately.  A strata title subdivision also allows you to sell each unit separately but both units share services and often common land.  

Find the right builder to bring your duplex dreams to life

Once you’ve done your research, arranged your finances and you’re ready to build an investment property the next step is to find a recognised duplex builder with a range of duplex designs to suit your budget and block of land.

Of all the duplex builders Newcastle has on offer, Valley Homes is the one with over 50 years experience in the construction industry and a trustworthy reputation to match. Valley Homes has the knowledge and experience to ensure your build will meet local council regulations and zoning. 

Valley Homes’ duplex designs are diverse and fully customisable, can be single or double-storey, and can accommodate a range of block sizes. We’re here to help you find the best strategy for building a duplex that you can be proud of. Contact us today.

Note: The information provided in this article is general in nature and does not consider your individual financial situation, so be sure to understand any tax implications and consult your accountant for further advice. 

The Shoreline Villas appeal

Shoreline Villas have been thoughtfully designed with every consideration for effortless flow and efficient use. Each home impresses with its stylish and contemporary architecture, timeless Hamptons themed design and landscaped gardens. With generous 2.7m ceiling heights, these homes are light-filled and airy from the front entrance to the generous alfresco area.

Each home includes a designer styled kitchen and also features world leading, in-home technology designed to make life easier, safer and smarter, from remote control of home security to temperature setting via your mobile device — from anywhere in the world!

What’s more, Shoreline Villas has been created with ‘future proof‘ living in mind. Residents can settle into their home knowing they’ll never need to move again. The master bedroom is located on the ground floor and there’s plenty of room for visiting family and guests.

Ease of living is guaranteed with modern medical facilities, shops, cafes and supermarkets all conveniently located nearby.

Incentives to help address the rental crisis

In response to the current pressures felt by those renters struggling with housing affordability, the budget brought relief with a 15% increase in Commonwealth Rent Assistance. Support for renters also serves to raise investor’s confidence in the build-to-rent sector.

Compared to other countries, the build-to-rent market in Australia is relatively small and new. Overall, the current size of the sector is estimated to be just 0.2% of the total value of the residential housing sector. To stimulate growth in this area, one of the tax breaks for property investors included in the Budget was the increase to the capital works tax deduction or depreciation rate from 2.5 per cent to 4 per cent per year. There was also an increase in the after-tax returns for newly constructed build‑to‑rent developments. 

As reported in the Property Tribune, Mike Zorbas, Chief Executive, Property Council of Australia, feels that the budget has provided a powerful win for good public policy.

“Levelling the tax playing field for build-to-rent projects is a significant one and will allow a welcome new asset class to grow into its full potential across Australia, unlocking up to 150,000 new homes and relieving pressure in the rental market over the next decade.”

Reasons to be optimistic

It’s hard not to agree with the positive sentiment expressed in API magazine by Bobby Haeri, Co-Director of The Investors Agency.

“All these announcements are pro-property investing and it’s promising to see that the government has acknowledged the importance of property investors in this country. I believe with over 350,000 people entering the country annually over the next couple of years and interest rates at or near their peak, we will see a promising few years in the property sector within Australia.”

With the demand for build-to-rent houses, alongside various incentives and tax breaks for property investors, plus changes to stamp duty provided by the NSW government, the opportunity is there to invest and be a part of the solution to the housing shortage Australia faces. 

Wondering where to start? Valley Homes can provide the experience and expertise to help you build an investment property whether you’re planning a single dwelling or a multi unit development. We’ll make your investment property dream a reality which in turn will become somebody’s home.

* New tax cuts could deliver 150,000 new build-to-rent apartments, by Rowan Crosby, The Property Tribune, 2/5/2023

There are plenty of construction companies and house builders that can offer new home construction but if you’re looking for something more, whether it’s  a heritage home build, an industrial style home or a custom home design, it’s best to find a home builder in Maitland that can offer years of experience and a diverse portfolio.

Whatever your vision, Maitland home builder, Valley Homes, has a team of designers and builders with the expertise and vision to transform your plans and ideas into reality. We work with local retailers to provide the perfect products for your custom home design and to ensure your dream home build is everything you envisaged and more. Contact us today.

Retire in style

Tallowood Medowie was developed for contemporary retirement lifestyle. Planning and pre-construction began in 2017 then momentum increased with construction in 2020 and 80 homes were soon available. Those savvy retirees that got in early have helped establish the Tallowood over 55s community and are a great advertisement for how to enjoy resort living.  Residents talk about how much they benefit from the social connectedness that comes with community living. A wealth of social opportunities make it easy to meet new friends and form meaningful relationships, contributing to a sense of belonging and wellbeing. 

Home sweet home

So often when people think of retirement villages, clusters of tightly-set pokey units are often what come to mind. In contrast, Tallowood offers dynamic living options to suit a variety of lifestyles and budgets. All homes are architecturally designed to maximise space and light and they’re finished to the highest quality. These are houses you can be proud to call home. 

There are a range of functional and flowing floor plans to choose from which feature an open-plan kitchen and generous living spaces. Each property has timber floors, an alfresco entertainment area as well as a choice of garage size to suit your lifestyle. Should the desire to travel take you on the road or to the skies you can confidently lock up your home knowing it will be safe and secure.

Most importantly, these houses are the blank canvas upon which you can add your own personal style and taste.

At home in nature

The natural environment is a key factor in the success of the Tallowood design. The architecture fits effortlessly into the landscape creating flow and serenity. Tallowood over 55’s living encourages an active and healthy lifestyle that allows you to connect with the environment whether that’s while fishing by the lake or walking in the surrounding parkland. In addition to this, the natural beauty and recreational opportunities of Port Stephens and Newcastle are only a short distance away.

74 meticulously designed homes are currently under construction and 71 homes remain in the project so now is the right time to consider a move to Tallowood Medowie if you don’t want to miss out.

Developed and built with community in mind

Large scale development has long been a feature of the Valley Homes’ portfolio and regular clients include Defence Housing Australia and Property Bloom Pty Ltd. Time and again, Valley Homes has proven to be the construction company that can be relied upon to complete the work on time and to budget. With extensive project management experience on large scale projects Valley Homes works with developers to realise their vision for homes and communities and Tallowood is an excellent example of this type of property development. Valley Homes is proud to be the Port Stephen’s builder making Tallowood the new home for the over 55s community in the Newcastle and Port Stephens region. With the project set to be completed in 2024 now is the right time to take a look at the opportunity for resort living.

Come and see for yourself

If you’re seriously thinking about downsizing to enjoy a maintenance free property in your retirement while embracing a social and healthy lifestyle then it’s definitely worth booking a personalised appointment to visit the Tallowood Medowie Display Suite. There’s a dedicated team ready to answer all your questions and offer advice on choosing the home that’s right for you. In fact, you’ll be supported through the whole experience of making the move to Tallowood. 

As one very happy resident advises, ‘Come and see it for yourself. Talk to the people and have a look around. You soon will see why Tallowood is the best choice.’ You might even wonder why it took you so long.

There are plenty of construction companies and house builders that can offer new home construction but if you’re looking for something more, whether it’s  a heritage home build, an industrial style home or a custom home design, it’s best to find a home builder in Maitland that can offer years of experience and a diverse portfolio.

Whatever your vision, Maitland home builder, Valley Homes, has a team of designers and builders with the expertise and vision to transform your plans and ideas into reality. We work with local retailers to provide the perfect products for your custom home design and to ensure your dream home build is everything you envisaged and more. Contact us today.