Whether you’re saving for your first home, upgrading to a larger one, or looking for an investment property, you’ll find there are many benefits to buying a brand new home off the plan. If you are considering buying a brand new home, check out iBuyNew where you can find more information about the benefits of purchasing a property off the plan.
It’s Brand New: First and foremost, it’s a brand new home, so there will be no costly renovations or repairs to worry about.
Save on Stamp Duty: Buying a brand new home can save you thousands in stamp duty, particularly if you are a first home buyer.
More Choices: When buying an existing dwelling, townhouse or apartment, it could take months for the right property to come on to the market. In highly desirable areas, some people have had to wait for a year or more for a suitable property. When buying off the plan, you can have your choice of properties in new housing developments. You may even be able to pick and choose the type of features and colour schemes you want included in your new home or investment property.
Time to Save for a Deposit: Settlement can take up to two years when buying off the plan, giving you more time to save a bigger deposit. A larger deposit means you won’t have to borrow as much money, saving you interest over the life of the loan.
Interest Earned on Initial Deposit: When buying off the plan, your initial deposit will be held in Trust attracting a few thousand dollars of interest prior to Settlement when the balance of the deposit will fall due.
Financial Incentives: Some states and territories offer financial incentives for investors and first home buyers to purchase a brand new property, as opposed to an existing dwelling.
Lock in the Purchase Price: When you buy off the plan, you lock in the purchase price up to two years prior to settlement. So if the property market experiences growth during that time, you move in with more equity.
Tax Incentives for Investors: When purchasing a new property, investors can claim the cost of Depreciation on their tax.
These are the benefits of buying off the plan but remember, there are also the potential pitfalls to consider and you’d be wise to check these out too before signing on the dotted line. For example, in a rising property market, your new home or investment property could be worth more money than you paid for it by the time construction is completed. But if the property market falls, your property won’t be worth as much and you could find it difficult to secure financing for the property.