4 tips to buying a property off the plan
As an investor, buying a property off the plan can come with significant financial benefits including significant tax depreciation and incentives. That being said it can also seem risky for many people due to a level of uncertainty. However, if you remain focussed and do your research, the benefits far outweigh the potential risks when purchasing off the plan. Here are our top tips to consider ahead of your next purchase.
1) Invest in people
With any major financial investment, it’s advised to surround yourself with an educated and reliable group of professionals who can help steer you in the right direction. Ensuring your financials are setup to achieve your long-term strategic goals is important and worth spending the time finessing. We also recommend seeking independent legal advice from a specialist property lawyer before committing to any contracts. This will not only provide you with peace of mind, but will help you understand the process and your responsibilities with an off the plan purchase.
2) Do your research
Purchasing an investment property shouldn’t be an emotional choice, but rather a rational, educated decision. It’s important to do thorough research into the location, developers, property history within the area, vacancy rates and demographics. Get to know the area and what it has to offer before you deem it a worthwhile place to invest.
3) Make the most of the benefits available to you
Many investors specifically seek out off the plan properties to maximise the benefits available to them. First home buyers around Australia are entitled to exemptions and concessions of stamp duty for properties purchased off the plan, as well as additional state based government grants. For example, in New South Wales off the plan buyers may be eligible for a grant of $10,000 if the value of the new home does not exceed $650,000 and the value of vacant land does not exceed $450,000. Furthermore, purchasing off the plan can allow the buyer to customise the final floor plan and finishes, and in many cases, avoid paying stamp duty.
4) Get in early
Generally speaking, the first release of properties in the development will be the cheapest. As sales gain momentum and availability of the properties becomes more scarce, the more likely the prices are to increase. If you’re purchasing in an apartment block, being quick will mean you have more choice when it comes time to decide which location within the building you would like to purchase.
If you’re interested in growing your investment portfolio, contact CPS Property today to discuss options available to you.
