If you’re torn between buying off the plan vs building a house, we are here to tell you about the benefits of buying off the plan especially if you’re an investor. There are possibilities for things to fail here and there like with any investment opportunity we get ourselves into, but with proper planning and research, you can mitigate the risks.
There are a lot of questions that cross our minds during these times. What if I change my mind along the way? What is the process in buying off the plan? Is it still considered a good investment if I buy off the plan?
So, what are the advantages of buying off the plan?
One of the main reasons why properties go on sale as early as construction phase is because the money that comes in will further fund it. It will also encourage investors to fund the projects because of the demand for off the plan properties from consumers. They are sold at extremely low prices compared to those that are already ready for occupancy.
Time to plan and save
Usually, properties go on sale at around 12-18 months before turnover time. When we say turnover time, it’s when the property becomes ready to be occupied by its owners.
Since you still have quite a number of months before you move in, there is more than enough time to plan and save your money. A common process for property developers is to advertise the future projects they have. You can check these out by visiting their model units and see if it’s something that you like.
Once you have chosen your preferred property, you can ask the real estate agents for the date when it would start pre-selling.
Good today, better tomorrow
Imagine this: you were able to purchase a certain property years before you were able to move in at a low rate. By the time you can move in, the rate has already increased significantly. This is a good investment because you can opt to sell it for its current value or have people rent it out from you at the going rate at the time you decide to have tenants.
Stamp duty savings
Stamp duty increases as the construction phases move forward so the earlier you purchase, the bigger stamp duty savings you get, and we’re talking about thousands of dollars here.
Since there is still time before you get to occupy the property, there are a variety of different payment options available for you to choose from. A bank guarantee or a deposit bond can help you. Also, the great thing about buying off the plan is that the prices are already locked in and the rate that you signed up with remains the same.
It’s brand new
Of course, we have to admit that one of the perks of buying off the plan is that it’s brand new.
There is no need for you to renovate, remodel, or rearrange the property. It’ll be a blank canvas for you to personalize and customize. From decor to furniture, from appliances to furnishings, from paint to fixtures to cabinetry and storage, you can tailor-fit it into what you want.
Having a brand new home is not only a badge of accomplishment for anybody, it is also a huge milestone. One of our biggest investments in this life is having our own property, be it for investment purposes or as an owner-occupant.
Off the plan properties have its advantages and disadvantages; at the end of the day, you have to know what you want and what you can afford. So, start the research and planning.
Related read: Buying Off the Plan
There are a couple of ways to find off the plan properties. One way is by reaching out to trusted real estate agents. Collings Real Estate offers off the plan properties from time to time, so make sure to contact us and inquire about them. Give us a call at +61 3 9486 2000 or send us an email: email@example.com