7 Reasons to buy Off the Plan
7 Reasons to buy Off the Plan
Buying off-the-plan essentially means that you are entering into a contract to purchase a property prior to, or during the construction phase of the development. Hence the phrase buying off-the-plan, as there is no finished product for you to inspect. Because you can’t actually see the finished product the contract is a more complex document, in other words there will be many more pages detailing what is actually going to be built and how it is going to be built. This is obviously for your protection.
There are some good reasons why you may consider buying off-the-plan. It’s possible of course that all of these reasons may not apply to your individual situation, but nonetheless these are some of the major reasons.
1. A better price
The developers need to presale a certain number of properties to obtain finance to commence work. This means that the properties are offered for sale at the current market value. Generally speaking, off the plan properties are more expensive when they are closer to completion than those that were sold much earlier. The earlier you lock in the price, the more likely you’ll experience a rise in the value of your property. This can mean significant cost savings on your overall purchase price which will include conveyancing fees.
2. Tax benefits
Significant tax benefits are available when If the properties are purchasing for investment purposes. The buyers may be able to claim depreciation on your tax for items like fixtures and fittings. The newer the property, the greater the benefits as there are more tax depreciations.
3. Secure property at today’s price for a low initial capital injection
While a deposit is made to secure the property (usually 10%), the balance of the money doesn’t need to be paid until the property is completed. In a rising market, all the capital growth are enjoyed by you with only 10% deposit. Moreover, buyers will have more time to plan their finance.
4. Stamp duty savings
If you are the first home buyer and buying off-the-plan property in NSW, there are substantial stamp duty savings available. The NSW Government in an attempt to encourage new development has Stamp duty exemptions remain in place for new homes with new caps of $550,000 for a full exemption and partial exemptions for purchases between $550,000 and $650,000 (Mortgage Experts)
5. Greater choice
One of the greatest benefits of buying off-the-plan is that you get to choose your property from everything that is available in the development. Normally speaking, you don’t have that opportunity if you are purchasing the existing properties.
A wide range of choices equals to a greater opportunity to purchase a property with better position, and floor layout, offering better capital and rental return.
6. Greater rental return
Nowadays, more and more agents will provide rental guarantee for the clients who purchases off the plan properties. It means that the buyers will enjoy the rental return since the day the properties are settled no matter they are tenanted or not. The risk of the vacant property is beared by the agent or the developers.
7. Seven year builders guarantee
Newly built properties in Australia come with a 7 year builder’s guarantee which means structural or interior building faults must be repaired by the builder.
Buying off the plan property in Australia is made easy with the assistance of First Fusion Real Estate. Whether you are buying new apartments off the plan, townhouses or house and land packages,First Fusion Real Estate provides you will the information you need to know about buying Australian investment off the plan property.