Buying off the plan can sometimes get a bad rap, particularly for the uninitiated. In fact, it couldn’t be simpler. At St Trinity, we specialise in off-the-plan properties (properties that aren’t yet completed), so we feel that we’re in a great position to be able to help guide you through. There are plenty of great reasons why you should consider buying off-the-plan.
Here, we explore 6 reasons buying off the property could be the best decision you can make!
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Stamp Duty benefits
Stamp duty concessions can be a major benefit of buying off-the-plan. While concessions vary from state to state, in NSW, you may be eligible for schemes such as the First Home Buyer Assistance Scheme, in which eligible first-home buyers do not need to pay stamp duty on new homes under a certain value. Check online at Revenue NSW or speak to your St Trinity property consultant for the latest concessions and eligibility criteria.
Government Grants and Tax Advantages
As with stamp duty, NSW has grants designed specifically for first-home buyers purchasing new homes, inclusive of off-the-plan developments. These grants are designed by the government to promote growth within the construction sector. You can find up-to-date information on NSW Government grants and stamp duty at www.osr.nsw.gov.au. As off-the-plan properties are brand new, you may also claim depreciation, which allows your accountant to calculate a dollar amount for property wear and tear and deduct it from your tax bill. This is a major tax advantage, reducing the ongoing costs that come with owning property and allowing you to expand your portfolio quicker.
The price is locked in upfront
When you buy off the plan, the price is locked in, no matter what happens in the market. By the time you settle, the value of your property may even have increased. Luckily for you, you don’t have to pay a cent more and can take advantage of this capital gain to continue building your property portfolio.
Time to save
When you buy off the plan, you only need a 10% deposit, and in some cases, only 5%, which gives you more time to solidify your finances. Having committed to the purchase, you’ll be much more motivated to save. You can also use the time remaining before the completion of construction to carefully plan what you’ll do with the property once it’s completed.
When you settle on an apartment, you will have the opportunity to inspect it for any defects. It’s a simple process of identifying any issues and logging them with the builder, who will ensure they are rectified before you move in. Your contract will also include a warranty that will cover faults and issues for a predefined period. It’s worth looking for developers who build and manage their properties and who have an on-site property services team to help you manage any maintenance issues.
Reduced costs and maintenance
New developments are designed and carefully planned to be ultra-efficient, fitted with the best insulation, energy-efficient appliances, and large windows to maximise natural light. Not only might this minimise your power bill, but it also minimises your environmental impact. New developments are also designed to be easy to maintain, and new buildings, fixtures, fittings and appliances mean that you’re not going to be dealing with appliances breaking down or wear and tear for a long time to come.
Plus, at the end of the day, what you have is a brand new apartment that’s never been lived in, with quality finishes and fixtures, in a location that meets your lifestyle needs.
While it may take some time for your brand-new apartment to be ready, the benefits of purchasing off-the-plan are more than worth waiting for!
To find out more about purchasing property as a first home buyer, speak with St Trinity Property Group about your next property purchase on (02) 9099 3412.
The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs.