Why buyers are keen to purchase ‘off the plan’
For some home buyers, the concept of buying a home that hasn’t been built yet can seem a little confusing. However, buying a property “off the plan” can also have a number of benefits for many buyers. It all comes down to your own situation and priorities.
Some of the factors that come into the equation when buying off the plan include:
- Potential stamp duty savings
Whilst the State Government has limited the stamp duty benefits of buying off the plan for investors, there are still huge savings to be enjoyed by those buyers who are purchasing their own home before it is completed.
2. Maintenance cost savings
By buying off the plan you are getting a brand-new home that comes with guarantees, both on the structure of the home and the appliances within it. This has the potential to make a real difference to your maintenance costs when compared with buying an older home.
3. Energy costs savings
Today’s building standards require all new properties to meet higher energy efficiency standards than those of the past. This means that you, (or your tenants if you are buying an investment property), will enjoy the cost benefits of more efficient design and appliances.
4. Potential Capital Gains
By buying off the plan, you are securing a property at today’s price. In a rising market, like we have been experiencing recently, there is a chance the property will be worth more than you paid for it by the time construction is completed and settlement occurs.
5. Extra time to save
When you purchase a property off the plan, you pay a deposit which secures the property in your name and don’t normally pay the remainder of the purchase price until your new home is complete. This gives you additional time to save while the property is being built, (a big advantage for first home buyers among others).
As we mentioned earlier, the benefits of buying off the plan will vary depending on your priorities when buying, and your situation as a buyer. However, if you are interested in learning more about the opportunities to explore this type of purchase, you can give the team at Barry Plant Preston and Northcote a call.
Get more from Barry Plant.
Sign up for our newsletter