5 Benefits of Buying off the Plan
What Is Buying off the Plan?
Buying a property ‘off the plan’ means that you sign a contract to purchase a home or apartment that is yet to be built. You have the opportunity to view design and building plans, but there is not a physical property to base your buying decision on. Although buying off the plan can be risky when the right precautions aren’t taken (we will go into this in more detail next month), there are also a number of benefits to this form of purchase.
Here are our top 5 benefits of buying off the plan:
If you are buying off the plan as an investment, you could be eligible for thousands of dollars in tax deductions. These deductions will reduce your ongoing costs and allow you to expand your property portfolio. To figure out your depreciation schedule, we recommend that you hire a professional quantity surveyor.
Stamp Duty Savings
Stamp duty is a tax charged by the government on the sale of a property, designed to cover the cost of the legal documents for the transaction. Buying off the plan provides great potential for stamp duty savings. For example, in Victoria, you could save more than $18,000 on a $500,000 purchase if you buy off the plan instead of purchasing an existing property.
Improved Energy Efficiency
Changes to the Australian Building Code mean that energy efficiency requirements are always changing. Purchasing a new home will ensure that the property is equipped with the most energy-efficient appliances and gas/water/electricity supplies on the market.
Potential for Capital Gains
When buying off the plan, you purchase at today’s market price. In a rising market, this means you will own a property that is worth more than you paid for it by the time the deal settles after construction. Purchasing at today’s price can be a disadvantage in a dwindling market, so make sure that you chat to some property market experts before signing any contracts.
Buying off the plan is also one of the easiest ways to break into the property market – often, you initially need only 10% of a deposit and then pay the balance at settlement, once construction is complete. This means that you can use the construction time to save costs, and reduce the amount you will need to borrow.
Input to House Design and Inclusions
Depending on who build your home, you may have the opportunity to custom-design the house. If you choose to go this route, you will have the freedom to create a home that suits your taste, budget and needs exactly.
At Homes by CMA, we create single storey, double storey and custom designed homes. Our builds are high-quality, competitively priced (we offer a best price guarantee) and feature a range of luxury inclusions that you won’t find elsewhere. For more information about buying off the plan, please contact us.
Stay tuned for next month, where we will discuss mistakes people make when buying off the plan!< Back to News