In the current Australian political climate where negative gearing is hotly debated, property investors are waiting on the side-lines until a decision is made by the incoming political party over whether to scrap this controversial investment strategy.
Many are tipping that if negative gearing is scrapped by the next government it could spell the end of off the plan property market. However, the tax incentives of purchasing a place off the plan is just one of many benefits associated with off the plan purchases. This list by iBuyNew, the off the plan experts, identifies 5 great reasons why off the plan is still very much an appealing prospect for Aussie home buyers and investors.
1. A New Home/Investment
Your new place will be brand spanking new! Everybody loves buying new things and property is no exception. If you’re going to live in your new property you’ll absolutely adore moving into something modern and fresh. If your property is going to be used for investment purposes a new place will allow you to maximise rental returns as a tenant will be more inclined to pay more to live in a new place.
2. Choices of Colours and Finishes
Unfortunately, when buying a ready-made place you’re unable to have an input into the design or style of the place. One of the benefits of buying a place off the plan is usually a builder will allow you a choice of colours and finishes. Even though most of your new place was conceived and designed before you purchased off the plan, it is still great knowing you played a small part in customising your new home of investment.
3. A Locked In Price
A key benefit of buying off the plan, especially for first home owners, is that it enables you to lock in a price. The Australian property market has grown rapidly over the last 5-10 years and many first home buyers missed the opportunity to make significant capital gains while they were saving up for their place. The beauty of off the plan means you can put down a deposit for a place today, even before the project is completed, and take advantage of any upside if the market continues to improve.
4. Flexible Deposit Options
Usually a property purchaser pays their deposit in cash when securing a property. With off the plan there are other flexible options available when putting down a deposit. Bank guarantees and deposit bonds are quite common. Purchasers usually receive a discount on their deposits too when buying off the plan and usually as little as 5% of the purchase price can be used to secure a property.
5. The Advantage of Time
It may take up to 2 years for your new property to settle. While some see this as a disadvantage, in actual fact it’s a huge advantage as it gives you time to save for a larger deposit. Further, if your property appreciates in value in that time you’ve earned solid equity growth.
For more information about purchasing property off the plan, speak to the experts at iBuyNew today!