Buying property prior to it being completed or even before the construction has started is known as buying ‘off the plan'. Property buyers who look to purchase ‘off the plan' have usually researched an area and a particular project before exchanging contracts. There are both benefits and disadvantages to buying off the plan.
Buying off the plan Sydney
View Sydney off the plan property
Buying off the plan Melbourne
View Melbourne off the plan property
There are many advantages to buying off the plan for the property buyer. These advantages can include significant tax advantages, early selection of a unit or property within a new development, paying today’s prices for a property that will only be finished in the future, fixed price contract for the property purchase, delayed settlement allowing the person buying off the plan to save for a greater deposit and plan for future mortgage repayments, stamp duty savings in some states (e.g Melbourne) and maximum depreciation is achievable for the person buying the property off the plan.
Some disadvantages for buying off the plan include paying too much for a property in a falling market, not being able to see the finish product – so quality of the development may not meet expectations and construction delays may ultimately delay the final purchase of the property. For the property buyer, buying off the plan, these disadvantages can be minimised by the prospective buyer doing their research on both the location of the development and the developer and other parties involved in the development, such as the Architects.
Those that purchase property off the plan in Australia should note that each state has different rules about buying off the plan. Some states have major benefits for buying off the plan. Melbourne, in Victoria, benefits from reduced stamp duty payments when buying off the plan. Stamp duty is calculated based on the land value and the value of construction that has occurred on the land. Property investor buying off the plan in Melbourne can save tens of thousands if they purchase before the construction of a development has started.
Buying off the plan property in Australia is made easy with the assistance of Find Investment Property. Whether you are buying new apartments off the plan, townhouses or house and land packages, Find Investment Property provides you will the information you need to know about buying Australian investment property off the plan.