Benefits of buying off-the-plan
Being off-the-plan is one of the most popular ways to get into the property market. There are many good reasons to consider buying off-the-plan...here are just 5 benefits:
Being off-the-plan is one of the most popular ways to get into the property market. There are many good reasons to consider buying off-the-plan…here are just 5 benefits:
- Price. Lock in and secure you new apartment at today’s prices. The property market goes up and down all the time. Fortunately, history shows that property values usually go up. When you buy o the plan, you e ectively lock in and pay at the current market value. So whilst it’s not guaranteed, there’s a good chance that if housing prices are rising, you won’t look back.
- Time. You have time to save during construction to reduce the amount you need to borrow. Settlement can take a long time, but this can be a positive thing. One of the advantages of buying off-the-plan is you have more time to save before settlement, reducing the amount you need to borrow, and therefore your loan repayments will be lower. It also gives you the added advantage of putting other things in order, giving you time to save for new furniture and moving costs. Also, if the property market grows during this time, then you could also enjoy good equity growth.
- Choice. One of the greatest bene ts of buying o the plan is that you get to choose your apartment first, meaning you will have the pick of the best apartments and a wider array of choice. This means a greater opportunity to purchase an apartment with a superior position, aspect and floor layout. This in turn, can offer better potential for strong capital growth and to maximise rental yields.
- Customise. A choice of colour scheme. In buying apartments off-the-plan, most Developers will give purchasers a selection of options for colour schemes and upgraded fixtures and fittings, so you can choose what best suits you.
- It’s brand new. Nothing compares to a brand new home – the smell of fresh paint and brand new carpet, not to mention the excitement of decorating and furnishing the space, knowing that it’s yours. For investors, a new apartment means you have the chance to optimise your rental return as incoming tenants are prepared to pay more to live in a brand new apartment. You can also claim depreciation due to the wear and tear of the building structure, fixtures and fittings contained within the property. As newly built properties contain new fixtures and fittings, the depreciable value of these properties will be higher. The owners are also eligible to claim the maximum capital works deductions for the building structure, which means more deductions are available to claim over the life of the property (40 years). Also, in Australia, newly-built properties come with a 7 year builder’s guarantee which means structural or interior building faults must be repaired by the builder.