The Advantages Of Buying An Off-The-Plan Apartment

There are a lot of benefits in purchasing an off-the-plan property. If you are an investor and are looking for investment, then take a look at the advantages:

Price

To encourage a faster sales rate, the developers start offering their newest venture at a much lower price. Once the developer has met with their construction finance, they usually raise the price. Therefore, if you wish to invest in an off-the-plan property, commit yourself early to potentially gain more.

Property at Today’s Price

You need to pay a 10% deposit upon signing the contract with the balance not required until the property is completed. Therefore, you are actually able to get the property at today’s price even if the market rises, you can surely enjoy any capital growth. Of course it can happen the other way round. The market price might fall, but that’s a rarity.

Tax Benefits

There are a few tax benefits here just like it is with all investment property purchases. When the property is new, there is greater tax depreciation available.

Save on Stamp Duty

The rate of stamp duty increases with the completion of the building. The concession is greatest if you bring the property before the development begins.

Other Savings

As already mentioned earlier, you just need to pay a deposit of 10% until the property is completed. A property might take 18months or more to complete. Therefore you get ample time to save a certain amount to fund your off-the-plan property. Later as it is completed, you can approach the bank for further finance.

Wider Choice

The greatest benefit of an off-the-plan property is that you get to choose the designs and locations where you want them (of course price dependant). This offers a better potential for rental yields as well as strong capital growth.