But perhaps the biggest consideration for buyers – whether you’re an investor, first home buyer or empty nester – is how buying off the plan stacks up financially. Here, we look at 4 of the most significant financial benefits you can expect from an off-the-plan purchase:
With the hard work of budgeting and saving for a deposit out of the way, you don’t want to be thrown a curveball when it comes to rising market conditions or an existing property that requires renovations to make it liveable. By buying off the plan, typically you’ll lock in a price upfront and only pay a deposit until the full amount is due at completion and settlement - even if its value has increased in the meantime. This also means if you’re renting or paying another mortgage, you won’t need to fork out duplicate housing costs.
Between stamp duty rebates and exemptions, super saver schemes and government grants, plenty of financial support and assistance is available to home buyers who buy a new build off the plan - particularly if you are a first home buyer. It pays to be clued up on what is available, so check your relevant government resources or discuss this with your lender.
Keep in mind that grants often pop up for specific and limited timeframes, so it’s often a case of jumping on an opportunity when it strikes. It's also important to think about depreciation as an investor. Buying off the plan comes with significant depreciation deductions, which investors often fail to consider. Once the new property is complete and generating an income, depreciation on the asset can be claimed – further maximising its return.
Desirable neighbourhoods can become more affordable when buying off the plan, as you’ll often secure a smaller slice of real estate with everything you need minus the hefty price tag. This can have flow-on financial benefits like lower commuting costs for owner-occupiers and increased rental appeal for investors.
Take a closer look at the financial factors you need to consider in our blog, how new builds stack up for property investors
Newly constructed homes come with minimal maintenance costs and fewer unexpected expenses that can leave you out of pocket for years to come. With modern plumbing, new appliances, and often new home warranties, you won’t be dealing with costly repairs or replacements any time soon – a big plus for investors and owner-occupiers.
And with your off-the-plan home being built in adherence to the latest building codes, you can expect a more energy-efficient home, saving you on utility bills from the get-go.
While the financial benefits stack up for both owner-occupiers and investors, to get the most out of your purchase, it’s crucial to do your homework and ensure you’re partnering with an established and experienced developer. Our eBook, buying townhouses and apartments off the plan in a Cedar Woods community, is where you can find everything you need to know in one place. It steps you through the entire process of purchasing off the plan – from the initial deposit right through to settlement – and is packed with handy tips, tricks, and checklists to help you on your way.