Like any major investment, buying real estate off-the-plan can be high risk if insufficient research has taken place. But there are also perks to buying property that has yet to be built.
Less upfront payments & Government Incentives
Unlike most cases, buying off the plan typically only requires a 10% deposit. The ability to obtain $10,000 grants and stamp duty reductions in some cases also makes this type of home purchase very attractive.
Time to save
Most new developments don’t require any payments to be made (besides the deposit) until construction has been completed. This means that buying off the plan will give you time to get your finances in check while your home is being built.
Developers usually try sell their units or apartments as early as possible, to cover some of the associated building costs. Because of this pressure, these properties tend to be cheaper in their first release, rather than subsequent releases. You will also have the ‘pick of the bunch’ if you invest in its early stages!
Another advantage of buying this type of property is that you will secure a brand-new home without having to consult with an architect or organise multiple trades.
Unable to ‘try before you buy’
One of the biggest downfalls of buying this type of property is that you will be unable to physically see what your house will look like, at the time of purchase. However, with things like 3D renders, virtual showcases and display rooms this is becoming less of an issue.
It is imperative that you do your research
It is essential that you do your research about the developer prior to paying your deposit. Be sure to research the developer’s financial situation and projects that he / she has completed in the past.
>> Have more questions about buying off the plan? Make contact with our team.