New Build 101: How to Invest Smarter in Australian Property

By iBuyNew

Most of us learn about property investing through conversations, stories from friends and family, or
watching what others do. You hear about auctions, renovations and the property your cousin bought in 2016. With so much of the conversation centred on established homes, buying new can easily feel too complicated or out of reach. But when the rules change, it’s worth taking another look.

On 7 October 2026, iBuyNew CEO Daniel Peterson and Head of Operations Jen Tsombanis joined Molly Benjamin for a live Ladies Finance Club session to break down the practical side of buying new. It focuses on what investors need to know: what you sign, when you need the money, and how to tell a well-chosen development from one that simply has good marketing. Here are the key takeaways.

First, the tax change everyone is asking about

The May 2026 Budget changes were legislated in June and take effect from 1 July 2027. Buy established property after Budget night on 12 May 2026 and you can no longer claim rental losses against your salary, while the 50% CGT discount gives way to cost base indexation plus a 30% minimum tax on gains. Anything you already held before the Budget is grandfathered, as are gains built up before 2027.

New residential property is carved out of both. It keeps full negative gearing against your salary and the option to hold onto the 50% CGT discount, which makes it the only residential asset class keeping both.

It’s important to understand what this means in practice. The changes create new opportunities for
investors, but choosing the right property still comes down to the fundamentals. The location,
development and developer all matter.

So, what actually counts as a new build?

There are four main options: an off-the-plan apartment, an off-the-plan townhouse, a house and land package, or a completed home that’s never been lived in.

Beyond the tax benefits, buying new has some practical advantages. Upfront costs can be lower, with stamp duty concessions available in some states and duty on the land component only for house and land packages. A 10% deposit will often secure the property until completion. Modern layouts and energy-efficient features can also appeal to tenants, while newer fixtures and fittings can mean fewer maintenance issues in the early years, with eligible defects covered by warranty. Your purchase price is locked in while the market can move, and new properties offer depreciation benefits that established homes generally can’t match.

Where people get caught out

Jen's point in the session was to understand the contract before you fall for the brochure.

A one-part contract covers the land and building together, as with most apartments and townhouses. You pay one deposit upfront and the balance at completion, with stamp duty on the full purchase price. The developer manages the build while you wait.

A two-part contract, common with house and land, separates the land purchase from the building
contract. You settle the land first, so finance needs to be organised earlier. Stamp duty applies to the land only, but you’ll manage two settlements and more paperwork.

With house and land, check who’s building, too. Retail builders often exclude essentials like driveways, landscaping, blinds and fencing from the base price, adding $50,000–$100,000 in extra costs. Wholesale builders typically include these in a fixed turnkey price, leaving the property ready to rent when you get the keys.

How the whole thing plays out

The process follows six main stages. You reserve the property with a small refundable deposit while the contracts are prepared. Your solicitor reviews them, you sign and pay the 10% deposit, then construction begins with no further payments during the build. Around three months before
completion, your finance is formally approved. Settlement follows two to four weeks after notice, then your property manager steps in to arrange a tenant.

Your deposit stays in a trust account, separate from the developer’s working funds, and is returned if the developer cannot complete the project.

How long does it take? From signing to getting the keys, allow around 0–3 months for a completed
home, 6–14 months for house and land, 6–18 months for a townhouse, and 12–36 months for an
apartment.

Finance timing is where things can get tricky. With a one-part contract, your loan isn’t drawn at
exchange, so the focus during construction is maintaining your borrowing capacity. With house and
land, the land settles much earlier, which can mean paying interest before rental income starts.

There are ways to manage that gap. iBuyNew can introduce lending options that avoid interest
payments during construction, while some structures allow you to pay a 10% deposit and nothing
further until completion.

The numbers that matter

The tax benefits can improve your returns, but they won’t fix a property in the wrong location. Dan’s advice was to look at six things before committing: the location, upcoming supply, local rental demand and suitable layouts, comparable sales, the developer and builder’s track record, and whether an owner-occupier would want to buy the property from you in seven to ten years.

Then look at the cash flow.

Take a $600,000 property renting for $600 a week, with an 80% loan at 6.5% interest-only. After rent, around $10,000 in holding costs and $33,000 in interest, you’d be about $11,800 out of pocket each year, or roughly $230 a week.

Add around $25,000 in depreciation, and the tax deduction could be worth about $17,300 at the top
marginal tax rate. That could turn the position into roughly $5,500 positive after tax, depending on your circumstances.

The key is knowing what you can comfortably afford. Consider how the numbers would change if
interest rates rose by 1–2%, the property sat vacant for a month, or your income changed. Run your
own figures with your accountant before signing.

Buying new can offer real advantages. The goal is to understand the numbers, ask the right questions and choose a property that fits your strategy, both now and in the years ahead.

How iBuyNew works with investors

Since 2008, iBuyNew has helped Australian investors navigate the new property market, with more than 4,000 client placements. We provide access to quality off-the-plan properties, independent market insights and end-to-end guidance from research through to settlement. Our approach starts with your financial position, investment objectives and long-term strategy, so we can identify properties that align with your goals.

Download the full guide. New Build Investing 101 covers contract structures, deposit and finance
timelines, terminology and the investor checklist in one practical reference.

Book a discovery session. A no-obligation conversation about your goals, your position and your next step. Book a discovery meeting with an iBuyNew property specialist or call 1300 123 463.

General information only. Not financial, tax or legal advice. Seek advice from a licensed professional foryour circumstances. This article was created in paid partnership with iBuyNew.