Advantages of Buying off the Plan Brisbane (QLD)
Buying off the plan and property investment guide...
Shrewd investors have long recognised that buying off the plan in Brisbane is a great property investment opportunity. Brisbane is part of the South East Queensland district which is the fastest growing region in Australia. A strong population rate coupled with an increased demand for inner Brisbane city properties have resulted in low vacancy rates, higher gross rental yields and strong capital growth for new investment properties. Here are seven good reasons why you should consider buying a property off the plan in QLD as part of your long term investment strategy.
Major tax incentives
Tax benefits are a major incentive of buying off plan Brisbane investment property as new apartments usually provide a higher rate of depreciation than houses or existing buildings. We provide depreciation schedule for our
Brisbane investment properties where possible. Any legitimate expense incurred in the running of your investment property such as property management fees, body corporate fees, landlord’s insurance, cleaning fees and travelling to and from your investment property are also tax deductible. You should always seek advice from a financial adviser or accountant before committing to an off the plan purchase in Queensland.
Secure property at today's price
One of the main advantages of
buying off plan in Brisbane is with a delayed settlement; the investment property may experience huge capital gains allowing you to on-sell the property and make a profit even before the property has been completed. By putting down a deposit and securing a price for the property at the current market value, you are locking in a price at current market rates. Keep in mind however that if prices fall, you also have to wear that risk but investing in property in Brisbane should always be a long term investment.
Equity appeal
Instant equity is another attraction of purchasing an investment property off the plan. In simple terms, equity is the difference between what your home is worth and how much you owe on it. So if you buy a property off the plan in Brisbane and it is worth $750,000 when you first purchased it but is valued at $800,000 upon completion, you have an instant $50,000 in equity. This equity can be used to create wealth and add to your existing investment portfolio.
Save a large deposit
When you
buy an off the plan property in Brisbane, you will need to put down a small deposit and this will lock in a price for the property at current market prices. This is a great financial incentive for buyers as it will allow you to save money for the deposit while securing the property at today’s Brisbane prices. This long term investment strategy can lead to considerable savings and you can put that money towards the deposit or buying another investment property.
Greater choice and flexibility
One of the greatest benefits of buying off the plan in Brisbane is that you may be able to customise your apartment and choose the types of finishes you want such as handles, floor furnishings and tiles and choose from a variety of apartments that may have a courtyard, parking, storage space, and balcony or are positioned on a higher floor. This can increase the value for the property and add to tenant appeal. It is important to ensure that that all finishes, features and items on display or in the developer’s marketing material appear in the 'inclusions' section of the contract.
Lower ongoing costs
Buying a property off the plan in QLD will save you money on maintenance fees as the property as all the fittings, appliances and so forth will be brand new. You will also not have to worry about larger maintenance costs such as painting of common property walls, replacing the carpets in stairwells or major landscaping until a few years when the property has depreciated. Newer properties also have increased insulation, energy-efficient heating and cooling equipment and use substantially less energy for heating, cooling, and hot water heating making the property tenant friendly and saving tenants money on utility bills.
Buy peace of mind
Buying a property off the plan in Brisbane can give you peace of mind as the building industry is heavily regulated for the protection of consumers in Queensland.
The Queensland Home Warranty Scheme ensures home warranty insurance must be taken out by the builder of a new home before construction. This insurance is designed to protect you from major building defects where the builder does not rectify, if the builder declares bankruptcy or passes away. The insurance is valid for a period of up to 6 years & 6 months to a value of $400,000.
Buying a property off the plan in Brisbane can help financially secure your future and play an important part in your investment portfolio. Buying a property off the plan in the right place at the right time and in the right location can mean strong rental returns and gross yield potential capital gains growth. Once you have secured a deal and locked in a price for an investment property, this allows you time to save up for a deposit, organise tenant’s insurance, property managers to look after the property and plan your rental strategy to maximise rental returns and growth yield.
Find
Investment Property is the
best property investment resource online and features the latest
new apartments and
off the plan investment properties. Whether you are looking to
buy investment property or looking for the
best property investment research, Find Investment Property has the
real estate investment properties you need.
