Purchasing a property off-the-plan that hasn’t been built yet may sound unconventional, but it comes with numerous advantages that can make your dream of homeownership a reality. While off-the-plan properties may have received criticism, it’s important to consider the potential benefits they offer. So, are there good reasons to invest in a property based on figures, artistic renderings, and virtual-reality walkthroughs? Absolutely!
Let’s explore eight major advantages of buying off the plan:
A new home, if well-built, typically requires less ongoing maintenance compared to an older property. This advantage can positively impact your budget, as you won’t need to factor in high maintenance or renovation expenses.
Stringent energy efficiency requirements outlined in the Australian Building Code mean that new off-the-plan properties come equipped with power-saving appliances and systems for gas, water, and electricity. This feature benefits both owner occupants and future tenants by reducing power bills.
If you’re purchasing an off-the-plan property as an investment and plan to rent it out, you may be eligible for substantial tax deductions through depreciation. Obtaining a full depreciation schedule from a quantity surveyor simplifies the process of claiming deductions on your home’s fittings and fixtures at the end of the tax year.
In many jurisdictions, governments offer incentives specifically designed to support first home buyers purchasing off the plan. These incentives may include grants, concessions, or financial assistance programs, making it an attractive choice for those entering the property market for the first time.
One of the unique benefits of buying off the plan is the ability to customise certain aspects of your property. Depending on the developer’s offerings, you may have options to personalise features, finishes, and layouts, allowing you to create a home tailored to your preferences.
Purchasing off the plan offers an accessible pathway into the property market. With Coposit (shameless plug…), you can bypass the need to pay a 10% deposit and instead, secure the property with $10,000 upfront. From there, you can pay the balance upon completion of construction, which typically takes six months or longer. This gives you ample time to save for moving costs, furniture, and other expenses related to your new home.
Buying off the plan allows you to secure a property at today’s price, potentially resulting in capital gains by the time you move in. While this should be viewed as a bonus rather than the primary reason for purchase, a buoyant market can increase the value of your property.
Buying off the plan provides an opportunity for significant savings on stamp duty. For instance, in Victoria, you could potentially save over $18,700 on a $500,000 purchase compared to an established property. This relief is particularly welcome, especially for first-time buyers.
While buying off the plan comes with its own set of considerations, these eight reasons demonstrate the potential benefits that await buyers. Conduct thorough research, engage with reputable developers, and seek professional advice to ensure your off-the-plan purchase aligns with your long-term goals. By carefully weighing the advantages, you can make an informed decision and embark on a rewarding homeownership journey.
If you are a first-time buyer looking to get onto the property ladder, or if you’re interested in securing an investment property to grow your portfolio, download our app or visit our website and get started!
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