The world of off-plan property purchases opens up a realm of exciting opportunities for prospective owner-occupiers and investors. As many a savvy buyer knows, buying a property before it’s completed comes with numerous advantages that can be leveraged to great advantage.
Here, we explore the benefits of buying a new build home off plan and offer useful tips to help you make well-informed decisions about your future home.
In with the new!
One of the standout advantages of buying off the plan is the prospect of owning a brand-new property. This means you can bid farewell to the worries of repairs and renovations that often accompany older existing properties. With no need for immediate fixes, you can truly embrace the joys of being a homeowner without the added stress and expenses.
Moreover, recently implemented changes to Australia’s National Construction Code have imposed more stringent energy efficiency requirements on new properties, which translates to the prospect of reduced energy bills for off-the-plan buyers compared to owners of older, less energy-efficient properties.
For investors, buying off plan can also mean significant tax deductions for depreciation on the fabric of the new building itself (the building allowance) and any “plant and equipment” items such as carpets, blinds and appliances.
Another plus for investors is that new-build properties tend to have strong tenant appeal, making it easier to attract reliable tenants who will care for the property and pay their rent promptly. The inclusion of brand-new appliances and extended warranties holds further appeal for investors, as it will reduce maintenance costs and ensuring a hassle-free ownership experience.
Upfront financial benefits
A key financial benefit of buying off-the-plan property is the ability to defer stamp duty for up to 12 months after signing the agreement or until the property is completed and handed over, whichever comes first. However, it’s important to note that at least one purchaser or transferee must occupy the property as their main residence for a continuous 12-month occupancy period starting within 12 months of becoming the owner.
Another upfront economic advantage lies in the additional time buying off plan affords you to save before moving into your new home. When purchasing off the plan, buyers typically only need to pay a 10% deposit, with the remaining balance due upon completion of the property. This extended timeframe allows you to diligently save and plan your finances, easing the burden of home loan repayments.
One little-discussed aspect of buying off the plan is the potential for making a profit before you even move in! By securing the property at a fixed price upon signing the contract and paying the deposit, you are shielded from market fluctuations until the property is completed and if the market experiences an upward trend during the construction phase, your property’s value may increase, enabling you to make a profit before you’ve even settled into your new home.
Useful tips for optimising an off-the-plan purchase
Buying a home that only exists on paper can present certain challenges, so carefully reviewing the floor plan is a crucial step in the process of buying an off-the-plan property as it allows you to envision how the property will suit your lifestyle, family, and individual needs.
Firstly, take a comprehensive look at the overall property and evaluate how it flows in relation to your lifestyle and individual needs. Consider whether the size of each room suits your requirements by comparing it to the dimensions of your current living space. This will help you envision how you can utilize the new floor plan effectively.
In addition to size, consider the furniture layout and whether the rooms can accommodate your needs. Take note of the number of windows and their orientation, as this will impact the amount of natural light that enters the space.
The kitchen is one of the most important rooms in any home and requires special attention. Carefully evaluate its size and how it connects to other areas of the property. Consider whether the workspace is sufficient for your food preparation needs. Additionally, inquire about the provided appliances and the availability of joinery, cupboards, as well as designated spaces for a microwave and fridge.
When it comes to bathrooms and wet areas, take note of the number of bathrooms in relation to the size of the property and evaluate the layout of showers and baths to ensure they meet your preferences.
Bedrooms play a crucial role in your comfort and relaxation. Assess the size of each bedroom and ensure that there is ample space to fit the beds you require. Consider whether built-in storage is available or if there is sufficient room to add additional storage options.
Lastly, it’s important to consider aspects that may not be explicitly mentioned on the floor plan. Energy efficiency, orientation, privacy, space utilization, and compliance with planning laws are all important aspects of your new home. Familiarize yourself with the quality of fixtures and fittings and ensure that they meet your expectations. Additionally, inquire about any additional inclusions or upgrade options that may be available.
By thoroughly reviewing the floor plans and asking relevant questions, you can gain a comprehensive understanding of the off-the-plan property you are considering, which will enable you to make an informed decision that aligns with your preferences, lifestyle, and future goals.
Purchasing a property off-the-plan presents numerous advantages, such as deferred stamp duty, reduced energy costs, more time for saving, potential profit and investment property tax benefits. To optimise your purchase, it is crucial to seek guidance from your real estate agent and legal advisor to fully comprehend the details of the property and make an informed decision. With careful consideration and thorough research, buying off-the-plan can provide an exciting opportunity to secure a brand-new property tailored to your lifestyle and financial goals.
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