Purchasing any kind of property is a big deal and buying off the plan property may seem a risky thing to delve into, especially when it means you’re buying a property that technically hasn’t been erected or realised yet. Though it is an understandable concern, the misconceptions remain unjustifiable when the actual benefits outweigh the risks.
But what exactly are the advantages of buying off the plan?
Buying a property is one of the biggest decisions you’ll make in your life, so it’s important to make sure you’re going into it well researched and fully aware of the process.
One of the most common reasons why investors buy off the plan property is the ability to save on stamp duty. Stamp duty is one downside of property purchases because you are required to pay it on all your purchase contracts. Given this fact, some state governments offer savings on stamp duty for off the plan properties as an incentive to increase opportunities in the construction and housing industries.
When you buy an off the plan property, it automatically means brand new property, brand new everything. The home is constructed with new materials, built with modern fixtures, and fixed with energy-efficient appliances. It’s basically a home fresh out the box. What this means for you is more savings. Your home will require zero maintenance for the immediate future as long as the property is well built and well decorated.
One of the biggest advantages of buying off the plan properties is it gives you time to save and allows you flexible payment terms. How? You will only have to make a 10% deposit up front. This gives you more time to save and get finance organised with your bank or broker, as developers take between 12-18 months to complete construction. If you plan ahead, you could save a significant amount before settlement, which reduces the amount of money you have to borrow.
Off the plan property valuation is also an amazing perk when you decide to purchase. Why? Buying off the plan allows you to buy it at today’s price. The property increases in market value as the construction progresses. This means that you will own a property that’s worth more than you paid for by the time you move in.
If the goal is to lease out your off the plan property, you could benefit from tax deductions amounting to thousands of dollars. A quantity surveyor can help you with this task so you can claim deductions on your home’s fittings and fixtures at the end of tax year.
Off the plan properties offer a range of benefits for those looking to purchase their own home or investors looking for their next venture. If you find yourself reading this and becoming more interested to know about off the plan, A9 Property can help you navigate through the real estate industry enabling you to make wise decisions on choosing the right investment.