Buying ‘off-the-plan’ basically means entering into a legally binding contract to purchase a property before it reaches the stage of final development and occupancy approval.
There’s no doubt that buying off-the-plan can have significant financial gains for a buyer. In Australia, buyers can enjoy tax depreciation benefits, government incentives and the ‘newness’ of a new property without paying the market premium.
Buying off-the-plan allows you to buy at today’s price. In a rising market, this can mean you own a property worth more than you paid for it by the time the deal settles after construction. If the value goes up by 20% or 30%, then the biggest concern you’ll have is how to spend the money.
Buying new property that is off the plan or under construction has many benefits. Apart from being an exciting process, buying off-the-plan is one of the easiest ways to get into the property market. Firstly, you only need a 5 – 10% deposit today and can pay the balance of the purchase price at settlement or once construction is complete.
Established stock in premium areas, tend to have a higher initial buy-in cost compared to new developments.
From an investment perspective, newly built properties offer depreciation benefits on fixtures and fittings in the first five to ten years or so, which may be attractive to buyers on rising salaries. It goes without saying that a brand new property will not need the ongoing maintenance that an older property often needs.
We have new property available in some of the best new developments on the market.