An off the plan property is one that will be built and completed in the future to a predetermined design. Just like any property purchase, when deciding whether this is the right option for you, you need to weigh up the pros and cons, as well as your unique circumstances and goals.
To get you started, here are some of the key things to know when considering an off the plan purchase.
All in the details
When building a new home, there can be an overwhelming number of choices to make – from countless paint colours to a seemingly endless range of materials and finishes. For some, deciding on every finishing touch is part of the appeal of building new. However, if you would prefer to have some of the thinking done for you by an experienced team of architects and designers, buying off the plan could be a weight off your shoulders.
Choosing a community
One of the great benefits of buying off the plan is the ability to choose a great community to live or invest in, often for a relatively affordable price tag. This can be the perfect opportunity to get a slice of real estate within a thriving and well-located neighbourhood.
Maintenance time and costs
Older properties can come with maintenance costs or issues that require time, effort and money to rectify. Off the plan properties can save you on maintenance as they have the advantage of everything being brand new, as well as warranties on the structure and fittings.
If minimal upkeep is particularly important to you, apartments and townhomes could be good options for you to consider.
Financial flexibility
Unlike building new where payments are made during the build process, buying off the plan allows you some different flexibilities. As you only settle on completion of your new property, you have a bit more time to save or sell another property while your off the plan purchase comes to completion.
Ready to rent
If you are an investor, buying off the plan can be a great way to ensure that your new purchase is rent-ready and appeals to a range of potential tenants. New homes will be built in line with the latest building codes and standards, meaning that you can start putting your property to work and earning rental income sooner.
Lock in your price
Having a set price locked in can be a great advantage if you need certainty and to avoid budget blow-outs. An off the plan property with a predetermined design means you’ll know exactly what you are signing up to. Plus, you might enjoy some market growth in the time between contract signing and your new property being complete!
Government grants and concessions
For an extra boost, you might be eligible for considerable savings on stamp duty or government grants, which are often available for new builds including off the plan properties. These vary between states so keep up to date with what is available to you.
Read the fine print
As with any new home purchase, make sure you take your time to research thoroughly before you sign on the dotted line. Ensure you fully understand the contract, including your responsibilities and the terms and conditions.
If you’re considering buying off the plan and want to explore your options further, you have come to the right place. Cedar Woods has a range of off the plan apartments and townhomes as well as house and land in great locations across Australia.
We’ve put together an eBook for a deeper dive into everything you need to know about buying off the plan. Download it here.