October 17, 2017
How can buying off the plan benefit you as an investor?
Buying off the plan has many benefits for investors in today’s competitive market, here are the top five:
1. Save on stamp duty – One of the biggest drivers for buying off the plan is avoiding significant stamp duty payments. As an investor buying off the plan can put you ahead of the game before it has even begun by potentially saving you thousands of dollars.
2. Pay today’s price for tomorrow’s equity – It is possible for property prices to rise during a build that may take up to four years, during which time extra savings can be made. If you are downsizing or selling another property to purchase an investment the value of your existing property may also increase before it is necessary to sell.
3. Seeing into the future – In the past off the plan buyers were unable to fully visualise what their property would look like once built, with only blueprints and artist’s impressions to go by. However, the clever introduction of camera mounted drones and 3D virtual reality, can provide a prospective guide of exactly what to expect.
4. Get involved, but not too involved – As an off the plan buyer you can have your say on what the finished product should look like, without the stress associated with renovating an existing property. Most developers encourage input on customising floorplans and upgrading fittings, finishes and appliances. For investors, having a bespoke build off the plan can mean greater capital growth and increased rental yields, along with the bonus of significant concessions on stamp duty.
5. Low-maintenance leasing – With a brand new, well-built property, there is no need for ongoing maintenance that could otherwise be a significant cost with an older property. Also new builds are constructed with energy efficient appliances, so your investment property is bound to be in high demand with potential tenants.
If you would like to know more about buying of the plan please contact your local Jellis Craig office or speak to the Jellis Craig Projects team.