Explore Rentvesting Perth with Strawberry Finance and learn how the strategy can help you rent where you want to live while investing in property, with tailored guidance on borrowing capacity, loan options and finance structure.
Choosing a new build investment property Perth purchase over an established home used to be largely a question of preference, depreciation and maintenance. Since the May 2026 Federal Budget it carries a tax dimension as well, because newly built residential property is exempt from the negative gearing restriction that now applies to established homes acquired after Budget night. That single distinction has changed how a lot of Perth investors are approaching their next purchase. It has not, however, made new builds automatically the better choice. A new build investment property Perth decision still has to stack up on price, rent, location, build quality and how the lender values it – and on several of those measures established stock continues to hold real advantages. This article compares both sides on the factors that actually determine the outcome.
Setting tax aside for a moment, the new build vs established investment Perth comparison comes down to a handful of practical differences that show up in the numbers over the first five to ten years of ownership:
For a buying off the plan Perth investor, the appeal is straightforward: secure a property at today’s price, pay a deposit, and settle on completion. Western Australia has also extended stamp duty relief for qualifying pre-construction purchases, now covering survey strata dwellings in addition to apartments and townhouses, with no duty applying on eligible purchases up to $800,000 and a tapering concession above that. Those are real savings. The risks deserve equal attention. Valuation risk is the most common issue – if the property values below the contract price at completion, the investor must cover the shortfall in cash, because the lender will lend against the valuation rather than the contract. Completion risk matters too, since a build that runs long ties up a deposit for an extended period. Finance approval also cannot be locked in for the full construction period, so a buying off the plan Perth investor needs to be confident their income and credit position will still support the loan at settlement. None of these rule out off the plan purchases, but they do argue for a conservative buffer and a broker who will tell you plainly whether the numbers have room in them.
The new home investment Perth tax treatment is the reason this comparison has changed. In general terms, based on what has been announced:
The Perth new build rental yield picture is more nuanced than the tax discussion suggests. New builds in Perth’s growth corridors typically deliver competitive gross yields, helped by lower entry prices in outer estates and by strong tenant demand in a market where REIWA has reported vacancy sitting around two per cent. Newly completed homes also tend to lease quickly and can command a small premium. Against that, growth corridor estates deliver a steady supply of similar homes, which caps rent growth relative to established suburbs where stock is finite. Established property in middle ring Perth generally shows lower gross yields but carries a greater land component, which has historically driven the stronger capital growth in this city. The honest position is that yield-focused investors and growth-focused investors will reasonably reach different conclusions on the same data, and the Perth new build rental yield advantage should be weighed against the land content you give up to get it. What we would encourage is running both options through a proper cashflow model on your actual borrowing capacity before deciding, rather than letting the tax treatment settle the question on its own.
Financing a new build investment property Perth purchase is not the same exercise as financing an established home, and the differences catch people out. On an established purchase, the lender values a property that already exists, and the valuation lands within days. On a new build or off the plan purchase, the valuation that matters is the one done at completion, potentially a year or more after the contract was signed. Lenders also apply different policy to construction lending, releasing funds in stages against progress payments, charging interest only on drawn amounts, and applying their own view of the builder and the contract. Some lenders are notably more comfortable with investor construction than others, and a handful restrict lending in specific growth corridor postcodes where they hold concentration limits. That last point is rarely disclosed and is one of the more useful things a broker brings to the conversation. Working across more than 40 lenders means we can identify early which ones will support the specific estate and builder involved, rather than discovering a policy restriction after your deposit is committed. If you are weighing a new build, it is worth having the finance conversation before signing, not after.
No. The tax treatment is one factor among several, and it does not override location, land content, purchase price or tenant demand. New stock generally carries a price premium and sits on smaller land holdings, both of which affect long-run growth. A well-chosen established property can still outperform. The right answer depends on whether your strategy is weighted toward yield or capital growth, and on your own tax position, which your accountant should confirm.
The exemption is directed at newly constructed residential property rather than established stock. The precise definition, including how it applies to substantially renovated properties and to homes that have been previously occupied, is the kind of detail that determines eligibility in borderline cases. Please have your accountant or a registered tax agent confirm whether a specific property qualifies before you rely on it.
Typically 10 per cent at contract, with the balance at completion, though this varies by developer. The more important number is the buffer you hold for a valuation shortfall at settlement. Lenders lend against the valuation at completion, not the price you agreed months earlier, so if the property values low you fund the gap in cash. We would generally want to see a meaningful cash reserve beyond the deposit before recommending an off the plan purchase.
Yes. Construction lending releases funds in stages as the build progresses, with interest charged only on the amount drawn. It works differently from a standard investment loan in both approval and servicing, and not all lenders treat investor construction the same way. You can read more on our construction loan page, or call us to talk through which lenders suit your situation.
The first home buyer thresholds lifted in May 2026 apply to eligible first home buyers, not to investors generally. The off the plan and pre-construction duty concessions have broader application, including to survey strata dwellings, with no duty on qualifying purchases up to $800,000. Eligibility rules are specific, so confirm your position with your settlement agent or RevenueWA before budgeting for a saving.
We handle the finance across more than 40 lenders, including construction and off the plan lending where policy varies considerably between banks. That covers structuring the loan as a standalone facility rather than cross-collateralising it against your existing property, and being direct with you about valuation risk before you commit. Call 0457 133 453 for a free consultation.
The information in this article is general in nature and does not take into account your objectives, financial situation or needs. Market figures are sourced from the organisations named and were correct at the time of writing. Property forecasts are the views of the parties quoted, not predictions by Strawberry Finance, and past growth is not an indicator of future performance. Lending is subject to lender credit criteria, terms, conditions and fees. For advice about your own tax position, please consult your accountant or a registered tax agent. Correct as at September 2026.
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