Rent where you love. Build an investment.
You do not have to buy the suburb you want to live in to get onto the Perth property ladder. Rent where you love. Build an investment — a new home where families will actually lease it. You meet tenant demand in a growth corridor and you still get exposure to the Perth market.
A house-and-land package does both jobs: it houses a tenant now, and it is an asset that can rise in value while you keep the lifestyle you are not ready to purchase.
Why build new
Tenants look for a four-bedroom, two-bathroom family home. A new house is easier to lease and easier to spec for rental, not for your own taste.
The tax settings still favour eligible new builds. From 1 July 2027, most established homes bought after Budget night (7:30pm AEST, 12 May 2026) will not let rental losses offset salary. Eligible new builds can still use negative gearing against other income. On a later sale, new residential property kept more than 12 months can still access the more favourable CGT rules, including the 50% discount where that election remains available. An accountant must confirm the dwelling qualifies.
Case study: Matthew and Sally
Matthew and Sally rent a 3-bedroom house in Lake Coogee for $750 a week — Coogee Beach, and a simple run to Fremantle for Sally’s work. Buying that lifestyle first would stretch them.
They stay put and build a new 4-bedroom, 2-bathroom house-and-land package in Hilbert for $845,000. Deposit 20% ($169,000). Loan $676,000, interest-only at 6.04%. They rent it to a family for $680 a week.
The Hilbert home does not cover interest on rent alone. They put in about $105 a week to stay on the ladder, on top of the $750 they already pay to live in Lake Coogee. Interest-only is usually a limited term, then the loan often switches to principal-and-interest.
That $105 is before tax. Interest and depreciation on a qualifying new build can still be used to offset salary from 1 July 2027. The same purchase as an established house after 12 May 2026 generally cannot.
After five years
On this interest-only example the loan is still $676,000 if they do not pay down principal (figures rounded).
| Growth assumption | Value after 5 years | Equity (value − $676,000) | Gain on $845,000 |
|---|---|---|---|
| 8% per year | $1,242,000 | $566,000 | $397,000 |
| 13% per year | $1,557,000 | $881,000 | $712,000 |
If the home grew at a steady 8% a year, it would be worth about $1.24 million, with equity around $566,000 — more than three times their $169,000 deposit.
While they rented the life they wanted, they also created and owned a new family home in the Perth market.
This strategy often suits people who can carry personal rent plus a modest investment shortfall and who will hold, not sell at handover.
General information only. Not tax, legal or financial advice. Growth figures are hypothetical scenarios, not predictions.