Like any major investment, buying real estate off-plan can be high risk if insufficient research has taken place. But there are also perks to buying property yet to be built.
- Big stamp duty savings
One of the well-known and biggest reasons for buying off-the-plan property is the potential for huge stamp duty savings duty, which can put a huge dent in your pocket, especially when you’re a first time buyer.
- Depreciation benefits
If you’re buying off-plan as an investment and plan to lease your new home to renters, you may be eligible for large tax deductions.
Get a full depreciation schedule from a quantity surveyor once your property settles. This will assist at tax time when claiming deductions for your new asset’s brand new fittings and fixtures.
- Repair cost savings
It goes without saying that a brand new home – if well built – will not need the ongoing maintenance that an older property often needs.
- Lower power bills
Your off-plan home should be fitted with some of the most power-saving appliances and gas/water/electricity systems on the market, which is a boon for owner occupants and future tenants alike.
- Potential capital gains
Buying off-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.
- Buys time for buyers
Buying off-plan is one of the easiest ways to get into the property market.
You only need a 10% deposit today and can pay the balance of the purchase price at settlement, once construction is complete (which might take six months or longer). Savvy buyers use this time to save towards moving costs, furniture, the home and the house-warming party.