Buying a home that hasn’t been built yet might seem like a leap of faith, but it could be the key to unlocking the property of your dreams. Off-plan purchases have their sceptics, often pointing to potential risks and uncertainties. However, whether as a first-time homebuyer or an investor, buying property off-plan offers a plethora of benefits that can significantly impact your financial portfolio.
Government Grants and Stamp Duty Concessions
First-time homebuyers are in for a treat when purchasing off the plan. Government incentives, such as the First Homeowner Grant (FHOG) and stamp duty concessions, can significantly reduce the financial burden. FHOG, specifically designed for new homebuyers, also applies to off-the-plan properties, offering a one-off government payment. Additionally, stamp duty concessions in certain regions make off-plan purchases even more attractive for first-time buyers. Click for In-Depth Insights – Revenue SA.
Potential Value Increase Before Move-In
In a flourishing property market like Australia, where values are on the rise, buying off the plan can be a strategic move. If property values surge after the contract is signed, buyers may end up paying less than the property’s actual worth. This not only translates to potential savings but may also impact the loan-to-value ratio (LVR), potentially eliminating the need for Lenders Mortgage Insurance (LMI). Visit Our Blog on 5 Tips to ‘Buying Off The Plan’ for Insights.
Extended Savings Period
Unlike traditional home purchases, off-the-plan buyers typically pay a deposit (around 10%) upon signing the contract, with the remaining balance due upon completion, often months later. This extended timeframe provides buyers with more time to save for a larger down payment, furnishings, or other moving-related expenses.
Rose Park Apartments selling through OC Projects.
Savings on Repairs and Replacements
New off-the-plan properties come with the advantage of brand-new appliances and systems, translating to years of worry-free living without the immediate need for repairs or replacements. This can be a substantial financial relief, allowing homeowners to focus on paying down their mortgage faster.
Developer Incentives and Lower Prices
Developers, eager to secure early commitments, often offer attractive incentives such as lower prices, furniture packages, or gym memberships. The initial off-the-plan price is usually lower than the completed property’s market value, creating an opportunity for substantial savings.
Energy Efficiency and Cost Savings
Newly built homes are required to adhere to stringent energy efficiency standards. Choosing an off-the-plan property ensures the inclusion of the latest and most energy-efficient appliances and systems, potentially saving homeowners thousands in energy bills over the property’s lifespan.
The Osmond apartments selling through OC Projects.
Customization and Design Input
Buying before construction allows buyers to have a say in the design elements of their future home. From floor plans to colour schemes, having input on these decisions ensures that the final product aligns with the buyer’s vision, making the home truly their own.
Tax Deductions for Investors
Investors purchasing off the plan for rental purposes can benefit from tax deductions. A depreciation schedule can identify deductible items within the property, including building allowance and plant and equipment deductibles for appliances.
Capital Growth and Profit Potential
Off-plan buyers often secure properties below market value, setting the stage for potential capital growth. The ability to sell at a profit before completion or benefit from increasing property values enhances the investment potential for off-plan properties. Things to consider before you sign the dotted line – Click Now.
While buying off the plan requires careful consideration and due diligence, the potential benefits are compelling. From government grants and tax incentives to customization opportunities and long-term savings, off-the-plan purchases offer a unique pathway to homeownership and investment success.