First time home buyers, owner occupiers, downsizers, upgraders, investors: when you’re looking to buy, purchasing property off the plan can be an attractive option for a number of reasons.
We’ve drilled down into some of the key benefits and things to consider when you’re buying off the plan.
Buying property off the plan gives you access to first release pricing. You could purchase a property that may appreciate in value during construction, and ultimately be worth more once built. You’ll also be able to save for a longer period of time, increasing the initial deposit towards your home loan.
What does your ideal apartment look like? Is it North facing? Should it have a spectacular view? Ground floor or top? Buying off the plan allows you to select a prime-positioned apartment perfectly suited to your needs. It’s good to get in early: that way you can look over the entire building rather than leaving it too long and potentially missing out.
Does the thought of living in an immaculate new apartment in a designer building appeal to you? There’s nothing quite like the feeling of that first soak in a brand new tub, or the taste of that first dinner prepared in your new kitchen.
Newness is attractive to tenants, too. Potential renters may pay a premium in weekly rent for the privilege of being the first to reside in the property.
If you’re looking for an investment, buying offers tax concessions through negative gearing and depreciation allowances.
It’s a good idea to check in with your financial adviser or accountant to see how you can maximise available tax breaks.
Buying off the plan allows you to thoroughly research and find the ideal property to suit your needs. It’s crucial that buyers look beyond the CGI and marketing collateral to ask some crucial questions, “what is the background of the developer, what have they delivered in the past? What are their past achievements, have they won an award, which building team are they using?
It’s also important to research the neighbourhood: is it close to transport? Are there good schools in the area?
What’s the shopping like?
Lastly, it’s worthwhile asking how many properties on the plan have sold to date, who’s buying them, and whether there’s a number of presales required for the project to go ahead.
Always seek independent advice before you commit to buying off the plan. Sparkes stipulates that it’s absolutely crucial that you check in with your accountant, financial planner and mortgage broker before making any commitments. Get the contract for sale thoroughly reviewed by your appointed conveyancer or lawyer, to highlight any issues and negotiate any requested amendments.
Ready to get started? We’ve put together a quick checklist to summarise key points and help you make an informed decision.
Agent’s tricks, traps, and tactics used to increase vendor motivation If a vendor has excessive price expectations, agents have several tricks to bring the vendor’s hopes back into line with market reality. The fact the hopeful owner’s inflated price expectations were borne from the agent’s original appraisal is a mute … Read more
This past Easter long weekend, the Ray White Forster Tuncurry team stepped out of the office and into a world of colour creativity, and community for the 42nd Great Lakes Art Society Open Art Exhibition at the Forster Gallery. As a proud sponsor of the event, we were thrilled not … Read more