Perks for purchasing off the plan
Buying ‘off the plan’ simply means buying a property that hasn’t been built yet. To assist with your decision to buy you will have access to floorplans, price lists, schedule of finishes and architect drawings. It can be a more flexible and affordable option compared to buying existing property, with a number of benefits for both home owners and property investors. You might think that buying a property without physically seeing it is a bit risky, but many Australians are turning to off the plan property due to the number of benefits and incentives only a new property can provide. So what are the reasons that makes buying a property off the plan so appealing? Here are a couple of great reasons why you should consider buying property off the plan: 1. Buys you time Whilst a deposit is made to secure the property (usually 10%), the entire payment does not need to be paid until the property has been built, which could take around 18 months to 2 years. This provides you with time to organise your finances, move house and reduce the amount of finance you need to borrow. 2. Lock in today’s price One of the advantages of buying off the plan is that you will pay the current market price for a property, even though it will be completed in the future. If the property market grows in value during this time, then you have made some good equity growth without outlaying the total amount. Take advantage of capital growth. We have many clients that pay X and by the time they settle, their property has gone up between $40,000 and $100,000. This capital growth allows you to buy another property and continue to build your property portfolio. 3. Tax advantages If the property is being purchased for investment purposes, the purchaser may be able to claim depreciation on their tax for items including fixtures and fittings. It is important to consult your accountant to find out if you are eligible. 4. First pick of the bunch Getting in early allows you to choose from a range of apartments within the block. Enquire about joining a pre-market launch notification list to have this added benefit early on. 5. Customisation Often a buyer can select from a couple of colour schemes, fittings and fixtures when purchasing. Depending on the size and stage of the development, you may even have the opportunity to bespoke the apartment. 6. Brand New It goes without saying that a brand new home will not need the ongoing maintenance that an older property often needs. Plus, you’ll have the luxury of moving into a property that is totally brand new, saving on repair and maintenance costs. For investors, you will maximise your rental return as an incoming tenant will pay more to live in a new apartment with modern fixtures and fittings.
7. Lifestyle Newer units are built to reflect today’s market – such as open plan living, larger balconies and concierge services. Off the plan properties are attractive to both owner occupiers as well as investors. By doing thorough research and due diligence you will be better equipped in purchasing a property off the plan that provides you with stable and solid growth for years to come. The LJ Hooker Projects & Developments team look after a number of luxury boutique developments. We welcome the opportunity to assist you with your off-the-plan property search. Please contact 9969 1500 or 1800 554 888 if you would like further information.