Have you ever considered buying a property off the plan? Why would we choose to buy off the plan?
Most people love the smell of a new home… The new floorboards, the silky stone benchtops, the spacious new walk-in-robe or that inspiring hot tub!! There are many amazing things to love in a new property.
There are also various financial benefits. However, these can differ depending on the type of buyer. We want to share some simple points why you would consider to buy off the plan:
First home buyers:
First home buyers are entitled to exemptions and stamp duty concessions if they buy off the plan. There are some great government grants that can be used to furnish that new home. The property type is irrelevant, but there is a spending budget for this entitlement. Feel free to contact me if you want to understand this further. A first-home buyer is often challenged with having enough deposit to obtain finance. With a good budget and savings capacity, to off the plan can also buy more time… Time to save more money while you’ve fixed a price to settle a property into the future. This works for many, but a good financial planner can help review your budget and ensure you are adequately ready for it.
Owner occupiers
Owner occupiers are also entitled to stamp duty concessions if they buy off the plan. Depending on the purchase price, this could save a comfortable estimate of $30,000 on the up-front cost of buying the property. Having a builder’s warranty can offer you ‘peace of mind’. These can be up to 10 years on the structure. The fixture and fittings will be brand new and also under manufacturer’s warranty. Perhaps this is a great incentive over inheriting the risk of buying an older place that has 10 year old kitchen appliances. Will you have the funds available to fix and/or replace them? Do you even have the time available to be home for the tradesman to help?
Property investors
Investors may not get a stamp duty concession if they buy off the plan however it does provide the opportunity to buy a property at a fixed price, allowing you to settle it the future. This has been a good way for investors to commit to their financial future while they wait for construction to complete.
Tax depreciation is one of the most valuable tax deduction for property investors. A tax depreciation schedule tables you tax deduction entitlements and outlines the breakdown on an annual basis. It simplifies your accounting and tax preparation, provides a higher claim and can last up to 40 years. The amount of entitlement over a 40 year time frame can be quite significant.
Attracting a good tenant and/or a good rental return will be better achieved owning something new compared to owning an older investment property. Many investors also have a long term strategy in mind. A simple buy/hold strategy. Buying an off the plan property will provide longevity. A modern property with modern fixture & fittings will last longer and require less maintenance. It will also cost less time to manage it.
We specialise in sourcing direct property off the plan for buyers. We are very passionate and client focused. Buying a property for whatever purpose should be exciting. It doesn’t come without nerves and worry. Our role is to help manage the emotional attachment and help you find the right property to suit your needs.
