Benefits of buying off the plan

And whilst all property purchases should be fully researched, there are plenty of reasons buying off the plan is a good idea, from the financial gains to the peace of mind.

Here area our top five benefits of buying off the plan:

1. Stamp Duty Savings

Stamp duty is a necessary downside of property purchases, and has to be paid on all purchase contracts. However, most state governments offer savings on stamp duty for the purchase of new properties, as an incentive to help drive the construction and housing industries. In NSW this could currently save you around $18,000 on a purchase price of $500,000, whilst in Victoria it could save you up to $21,000 – just for buying a new apartment off the plan instead of buying an established property. 

2. Brand New Property

A brand new property is fresh out of the box, so there will be zero maintenance for the immediate future. It is rare for the purchase of an established apartment to not require at least some maintenance work. Buying off the plan means everything is brand new, not only the property itself, but all off your fixtures, fittings and any included appliances like big ticket kitchen and bathroom items. As well as maintenance, buying off the plan means you won’t need to redecorate any time soon – another huge saving. With most developers offering a choice of interior colour schemes, you’ll have a fresh home decorated just the way you want.

3. Time to Save

One of the biggest financial advantages of buying off the plan is the fact that you only need a 10% deposit up front. This makes it so much easier for you to get on the property ladder in the first place. You then have plenty of time (the time it takes the developer to complete construction) to get the rest of your financing together with your bank or loan provider. With larger developments, this could be anything up to a year or more. If you plan ahead for this, you could save a significant amount before settlement, thereby reducing the amount you have to borrow, all of which is a good thing.

4. Deposit Interest

Most developers selling off the plan will put your deposit into a trust account until settlement. The money is often invested during this period, so check with the developer to see who gets the benefit of any interest earned. Many developers now offer to pay interest back to purchasers as an incentive, meaning your money is working for you and earning you interest during the construction period.

5. Tax Depreciation

If you intend to purchase and then lease out your off the plan apartment, you could benefit from tax deductions worth thousands of dollars. When your apartment is an investment asset you can claim its depreciation against your tax return.

Whilst the above are clear benefits of buying off the plan, as always, please consult your financial advisor before making a property purchase.

Find more advice on buying Off The Plan here. 

To view our most current off the plan apartments for sale, click here.