With the rise of residential developments nationwide, more Australians are catching on to the perks of buying their next property off the plan. This means securing a property before it’s even built, all based on architectural plans and designs. Buying off the plan has some pretty impressive advantages, making it a smart move for both first-time homebuyers and seasoned investors. So, let’s dive into why this forward-thinking strategy could be your clients’ next great investment.
1. Stamp Duty Savings
One of the most significant financial benefits of buying off the plan is the potential stamp duty savings. Most states provide greater discounts for newly constructed properties. When your clients sign a contract before construction begins, stamp duty typically applies only to the land value, not the finished product, potentially saving them thousands of dollars.
2. First Pick – Greater Choice
Purchasing off the plan gives your clients the first pick of properties within a development. This means they can choose the best house that suits their preferences, rather than settling for whatever is left once construction is complete. Early buyers often have access to the better locations of the estate and layouts.
3. Time to Save
With off the plan purchases, settlement can be up to two years away, giving your clients ample time to save for a larger deposit. Additionally, if the property market appreciates during this period, they benefit from equity growth without any extra investment.
4. Financial Incentives
Many states offer financial incentives for first home buyers and investors who purchase off the plan. These incentives can include grants, rebates, and other benefits that reduce the overall cost of the property. Check with your property consultant to find out what incentives are available in your state, as they can significantly lower the financial burden for your clients.
5. Flexible Deposit Options
Off the plan purchases often come with flexible deposit options. In addition to paying a cash deposit, your clients can use a bank guarantee or a deposit bond. It’s important to consult with and understand the payment methods accepted by the developer.
6. Locked-in Price
One of the major benefits of buying off the plan is the ability to lock in the purchase price at today’s market rate. If property values increase by the time construction is completed, your clients have secured their property at a lower price, resulting in immediate capital growth. This locked-in price can be a significant financial advantage, allowing for greater returns on their investment.
7. Tax Advantages
Investing in new properties often comes with tax advantages. Your clients can claim depreciation on fixtures and fittings, which helps reduce the ongoing costs of holding the property. These tax benefits make off the plan properties particularly appealing to investors, enhancing the overall profitability of their investments.
8. Customisation Options
Buying off the plan may allow your clients to customise certain aspects of their property. Developers often offer a selection of colour schemes and finishes, enabling them to personalise their new home or investment property to better suit their tastes and preferences.
9. Deposit Held in Trust
Your clients’ deposits are typically held in a solicitors trust account during the construction period, ensuring their money is safe.
10. Brand New Property
Everyone loves the idea of moving into a brand new home. First home buyers will enjoy modern amenities and a fresh start, while investors can attract higher rental returns from tenants who are willing to pay a premium for new properties.
11. Full Turn Key
One of the standout features of buying off the plan is the potential for a full turn key solution. This means the property is fully completed and ready to move in or rent out upon settlement. Everything from landscaping, fencing, driveways, and interior finishes is taken care of, ensuring a hassle-free experience for your clients. A full turn key solution provides peace of mind, knowing that the property will be delivered to a high standard without any additional costs or work required post-settlement.
Buying residential property off the plan offers numerous benefits, from financial savings and incentives to the opportunity for customisation and capital growth. At ALC Projects, we are dedicated to helping your clients make informed decisions that align with their goals. Whether they are first home buyers or seasoned investors, considering an off the plan purchase can be a wise and rewarding decision.
Interested in new house and land packages available through ALC? Reach out to us today.
