Property Buying Guides
Most people who are looking to buy an apartment are attracted to the costs savings associated with it over purchasing a house.
Finding a cheaper apartment that you can renovate may seem like a great cost-savings option however, renovation costs can easily blow out and there may be restrictions as to what the building's body corporate will allow.
Buying off the plan is another option that can give you exactly what you want within the price range you need.
Here are our top six benefits of buying off the plan:
When buying off the plan, you only need a 10% deposit upfront. Yes, you can continue to save and buy an established property down the track, but getting in early means your money starts working for you sooner.
Getting your foot in the door can also encourage you to stick to your savings budget by giving you a real, tangible goal.
2. Time to shop for a great loan and save more towards your apartment.
During the time it takes for construction to complete, you have the opportunity to shop around for the best value loan for you. With time on your side you can see how banks and specific home loan lenders compare and also wait to see if interest rates swing in your favour.
During this time you can also continue to save, which means you won't have to borrow as much, saving you money on your loans interest payments.
3. Big savings on Stamp Duty.
Most State Governments offer savings on stamp duty for off the plan properties. The reason for this is because at the time you enter into the contract, the stamp duty is based on the value of the land and not the property as it has not been built yet. Depending on the purchase prices of the property, you could save anywhere between $15,000 to $25,000 in stamp duty fees.
4. Earning interest on your deposit.
One of the incentives property developers offer to customers is interest on their security deposit. The deposit you pay is usually put into a trust account where it will be invested until your settlement is finalised. During this time, your deposit will earn interest and a good property developer will give that interest back to their customers.
5. Tax Incentives.
If you are looking to use your off the plan apartment as an investment, you can claim it's depreciation against your tax returns. These sort of tax deductions can save you thousands of dollars at tax time.
6. The luxury of a brand new property.
If you are going to live in your off the plan purchase, you'll have the wonderful experience of making a brand new property your home. By working with your developer, you'll get to choose out of their selection of fixtures, colours and appliances. There will be no need to smash down walls or replace anything in the near future. Everything will be as you like, with minimal to no maintenance for your first couple of years.