Property

Off the Plan

Buying property off the plan means you are simply buying a property that hasn’t been built yet. All the hard work with design, permits and regulations, is all taken care of, and in some instances you can still customise the interior colours and finishes to suit your tastes. It really is an ideal situation if you are time poor or feel that the design process could be daunting.

Some of the key benefits involved in off the plan purchases are:

  • opportunity to secure the property at a great price as many developers/owners will offer a financial incentive for an early sale,
  • maximise capital growth as some properties can increase in value during the construction period,
  • favourable deposit structure, which can often be 10% at the beginning at the remainder at settlement, giving you time to acculate savings,
  • some degree of personalisation, depending on the stage of construction,
  • potential deduction claims for depreciation, fixtures, fittings and stamp duty exemptions in some situations.

As per any investment or finance decision there are risks to be aware of and it pays to be diligent

  • there is the risk that the property is never constructed, whilst you will receive your deposit back, you will have missed out on any interest and capital gains,
  • consult legal advice in regards to the building contract to completely understand consequences of early or late project delivery or incompletion,
  • review the background and previous projects the developer has been involved in to understand their delivery to promise.

As per any property purchase, it is important to obtain a pre-approval for peace of mind that you will have everything in place in time for settlement. Leading up to your settlement, you will need to have your property valued which in some instances can fall short and affect your finance situation, your Loan Studio contact will be able to assist you with your different options in this instance.

If you’re a first home buyer, we have collated all of the questions we have been asked by our first home buyer clients, check out our First Home Buyer FAQs, or download our handy First Home Buyer Checklist. 

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