Off The Plan Property
Benefits of Off-the-Plan Properties. Discounted Pricing. Stamp Duty Savings.
Buying off the plan has always been a popular way to get into the high-demand Melbourne property market. In a rising market, it is a almost fail-safe way to lock in low prices, own a property without having to pay in full for another 1 to 2 years.
It usually comes with stamp duties discounts, low deposit and you get to buy a brand new house, with brand new fixtures and fittings. Because of these incentives, off-the-plan properties are popular with first home buyers and buyer who are eligible for the Victoria First Home Owners Grant.
What are the benefits of buying off-the-plan?
1. Stamp Duty Savings
Buying properties involved stamp duties, and has to be paid on all purchase contracts. In order to help home buyers get into the market, and to encourage the building of more houses, most state governments offer savings on stamp duty for the purchase of new properties. In Victoria stamp duty savings can save you up to $20,000 – just for buying a new property off the plan instead of buying an established property. More information at Victoria State Revenue Office
2. Brand New Property
Everyone loves that "NEW CAR SMELL", and with buying off the plan, it is no different. You get the property you want, BRAND NEW. New fixtures, fittings, appliances, bathroom, kitchen, everything. You can literally smell the packaging it comes in.
Most developers allows you to customise the house you choose. You can pick from a selection of color schemes, carpets, and most offer upgrades to let you make it extra special, and to suit your budget. Some might even allow you to make alterations to the floorplans, etc
4. More time to build up the savings
The other major benefit of buying off the plan is low deposit up front. Most developers let you put in a relatively small deposit of 10%, and there are no other payments till settlement, which could be between 6 to 24 months away, depending on the development.
5. Tax Depreciation
If you intend to use the property as an investment, ATO allows you to claim depreciation on the property and fixtures. Have a chat with your tax advisor to find out more.
6. Lower Energy Bills
The Australian building codes have recently been updated to ensure new properties to meet stringent energy efficiency ratings. They all come with power-saving appliances, high-efficiency insulation to ensure the property stays cool in summer and warm in winter.
7. Potential Capital Gains
In a rising market, such as now, you get to lock in low prices, and sell at a profit when it is ready. This, however, should not be the reason why you get an off the plan property. Property buying should be about long term investment. In some area, because of the supply, it may take between 5 to 10 years before significant capital gains are realised.
Like any investment, you have to do your diligence and research. By buying the right property at the right price, in the right location, you will always be a step ahead.
This is where engaging the services of good buyer agents like us would help. Our services might not even cost you a cent.
Have a chat with us.
We have access to some of the best off the plan properties in the high-demand Melbourne suburbs and the growing South-East Melbourne region.
To find out where Melbourne's growth areas are, check out our blog on the Melbourne growth areas.
We only hand-pick the best, and these properties tend to sell fast, because of the high quality, and good location.